US Dollar Gains Dominance Amidst Other Riskier Assets in the Face of Hard Brexit and Muted Trade Talks

US Dollar Gains Dominance Amidst Other Riskier Assets in the Face of Hard Brexit and Muted Trade Talks

Among its G10 peers, the US dollar performed beyond expectations racing past others to be at the forefront. As the fears about a hard Brexit resurfaces, following Boris Johnson’s move to prevent further Brexit extension beyond next year and also a revised WAB to be voted on by British MPs this week, the Pound took a downtrend. Sterling fell by 0.14% to trade at $1.3112.

The recent preliminary trade pact which brought the US and China in agreement over certain terms and a measure of tariffs roll back seemed to be favorable to the dollar as it gained strength against a basket of currencies while this seemed to weigh on the AUD in its USD pairing.

The safe-havens such as the Japanese yen and gold remained pressured. The yen being affected by an uprising escalation between Japan and Russia as the latter held five of Japan’s fishing ships hostage recently.

Slow-moving GBP/USD pair showed signs of retracement breaking the 1.31 trend line despite hitting the least of daily lows recorded since 2018 on Tuesday while EUR/USD ranged above 1.1100.

USD/JPY traded slightly below 109.50 while Gold ranged below $1480. Recent monetary policy conditions of the Reserve Bank of Australia saw the Aussie taking a plunge. The Kiwi dollar took the reversal trend buoyed by recently released New Zealand’s 3rd quarter GDP figures.

In Eurozone, S&P 500 futures traded negative. Brent crude retraced from 3-month highs consequently from a surge in US Crude Stocks for the week.

Daily Market Outlook
Due out later today is Germany’s Ifo Business Climate Index numbers and sub-indexes figure for December. It is seen that Current Assessment figures and business expectations will count while the Business Climate Index will predominantly be most impactful on the Euro.

Due out later today is the final estimate for November inflation to be released out of the Eurozone, in which monthly consumer prices will be at the center of attention. Inflation stats will be most impactful on the EUR and the Pound. Brexit sentiments will mount more pressure on the Pound.

Investors await ECB’s head, Christiane Lagarde’s speech on the latest monetary policy earlier in the day.

Euro’s current standing is -0.03% to trade at $1.1113

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Author : Azeez Mustapha

Avatar

Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.