fxs_header_sponsor_anchor

News

Forex Today: US Dollar on the backfoot as optimism persists

What you need to take care of on Tuesday, December 28:

The US Dollar extended its Friday slide, ending Tuesday with modest losses against most major rivals. Softening US inflation, as per data released last week, coupled with Chinese news to boost the market sentiment after a long weekend.

China upwardly revised its Gross Domestic Product (GDP) estimate for 2021, bringing it up to 8.4% from 8.1%. Additionally, the government continues to ease covid-related restrictions, which will mitigate the negative impact limitations had on the economy. Finally, the China Immigration Administration announced it would resume issuing visas for mainland citizens travelling abroad.

Global stocks were supported by speculation the Chinese government would focus on boosting growth and move further away from its covid-zero policy. Wall Street traded mixed, with the DJIA up, but the Nasdaq Composite is shedding roughly 100 points.

On a down note, Russian  President Vladimir Putin signed a decree that bans the sale of Russian oil to countries that imposed the oil price cap. It will run from February 1 to July 1. There are reports softening the headline and noting that it does not necessarily imply oil exports to countries with formal bans.

The EUR/USD pair keeps hovering at around 1.0650, while GBP/USD is down to 1.2025. The AUD/USD pair trades in the 0.6730 price zone, while USD/CAD hovers around 1.3520. Easing oil prices weighed on the CAD as the WTI trades at around $79.30 a barrel. Finally, USD/JPY ticked higher and trades at 133.35.

Gold peaked at a fresh 3-week high of $1,833.32 but eased towards its comfort zone at around $1,815 by the end of the day.

 


Like this article? Help us with some feedback by answering this survey:

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.