Dollar loses ground; metals shine on Tuesday

Traders sold the USD on Tuesday, and the EURUSD pair rose toward 1.21, while the USDJPY pair slipped below the 105 threshold.

Weaker greenback helped precious metals to erase some of its last week’s losses, with gold climbing to 1,840 USD and silver settling above 27.50. However, it is most likely only a matter of time when another attack on precious metals occurs, and in that case, they will drop sharply, again.

Meanwhile, the French economy, the EU second largest, is still expected to rebound 5% this year despite the uncertainty created by the coronavirus pandemic, the head of the country’s central bank said on Tuesday, reiterating its December forecast.

Brutal lockdowns and the pandemic have been so far very bullish for equities – with US benchmarks pushing to new all highs every day, while the German DAX rose above the 14,000 EUR level. 

Later in the day, the US JOLTS job openings are expected to weaken slightly to 6.5 million from 6.527 million. 

US oil is up eight consecutive days, rising toward the 60 USD. Oil tends to be one of the best inflation hedges, and since investors are expecting more and more inflation, oil could easily continue rising toward 80 USD, despite weak demand. 

Source: https://www.axiory.com/market-news/dollar-loses-ground-metals-shine-on-tuesday