Dollar continues to bleed on Tuesday

The greenback was trading lower against all of the other major currencies, yen excluding, and the EURUSD pair was attacking the 1.20 level again. Bulls failed to breach the important level yesterday, but the dip was quickly bought, and the euro is on the rise again.

Equities continue to rise, no matter what happens, with the Nasdaq 100 index rising toward the all-time highs near 12,450 USD. However, it looks like the safe-haven rotation into tech stocks might be coming back as other indices underperformed yesterday. 

As more states in the US are performing lockdowns, school closures, and other restrictions, tech stocks might be the correct bet, yet again. 

In Europe, the spread of the Covid-19 virus appears to be weakening in several countries, but the economic damage is already done. The ECB is about to unveil more stimulus at its December meeting, and since the euro is surging against the USD, European exports will be weakened.

Later in the day, the EU CPI numbers are due, with the YoY change expected to come out at -0.2%. One is wondering how are they coming up with these numbers.

Additionally, the Federal Reserve Chair Jerome Powell is due to testify on the CARES Act before the Committee on Banking, Housing, and Urban Affairs, in Washington DC. His speech will most likely bring elevated volatility to the markets.

Source: https://www.axiory.com/market-news/dollar-continues-to-bleed-on-tuesday