The US Dollar Sees Further Decline

The USD managed to hold above the psychological level of 1.1900 following the release of US macro data.

Even though vaccine optimism has been positive for the USD, concerns about the upcoming winter season which could worsen the pandemic is severely affecting the smooth recovery process.

However, with the White House contemplating relaxing travel restrictions for non-US citizens, especially investors and business travellers, there is some optimism about economic growth gaining more pace and momentum in the coming months.

The S&P 500, on the other hand saw an increase, despite US blacklisting four Chinese companies and signalling an escalation of the ongoing US-China tension.

Gold saw a rise of about 0.30%, to reach $1812 in light of dwindling market optimism. But the upcoming holidays pose a real challenge to the bulls in maintaining and consolidating the gains made.

Silver, gold’s counterpart, also registered mild gains of 0.39% to close at $23.39. The silver bulls are kicking their heels to attack the fortnight-old $23.95 resistance level.

GBP bulls shut their eyes to the downbeat tone of Brexit news and held on to intraday gains, closing at 1.3393.

Source: https://www.axiory.com/market-news/the-us-dollar-sees-further-decline