Forex Today – Asian Session: Dollar Could Benefit From Risk-Averse Headlines

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Things to watch out for on Friday, November 25:

The dollar extended its weekly drop on Thursday, settling near its lows against most of its main rivals. Activity eased after the London lockdown as US markets were closed for the Thanksgiving holiday.

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Overall, the mood was upbeat, as the Asian and European indices closed in the green. However, some worrying headlines could soon turn investor sentiment around. On the one hand, tensions between Russia and the EU continue and are set to intensify, as the president of the European Commission, Ursula von der Leyenannounced that they are working at full speed on a ninth package of sanctions against Moscow.

On the other hand, China reported a record number of coronavirus infections in the country, while a state news channel reported that Beijing and other cities are on lockdown again. Financial markets could become risk averse on concern that Chinese restrictions could disrupt global trade, trigger new supply chain problems and trigger another inflationary spiral.

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EUR/USD is around 1.0400, while GBP/USD is trading around 1.2110. AUD/USD extended its weekly recovery and trades around 0.6760, while USD/CAD eased to the 1.3330 price zone. Lastly, USD/JPY moved south and trades around 138.40.

In cash, gold is consolidating at around $1,755 a troy ounce, and WTI stands at $78 a barrel.


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Source: Fx Street

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