- DXY pairs losses in the final hours of FX trade and manages to close in the green close to 90.80.
- However, DXY still closed the week with steep losses of just over 1.0%.
The Dollar Index (DXY) picked up into the Friday FX market close, closing the final trading day of the week close to 90.80 with gains of just under 10 points or 0.1%.
USD gasps for breath
It’s been a tough week for USD to say the least. DXY was as high as 92.00 on Monday, reversing aggressively to the downside to hit lows beneath 90.50 on Friday, a drop of more than 1.2% at worst levels. A much-needed technical recovery, or bout of profit-taking appears to have been in play in the final hours of trade, but whether this very minor recovery can continue into next week remains to be seen.
The US dollar has been hit this week on the usual dollar bearish cocktail of factors including US fiscal stimulus and vaccine hopes, dovish Fed expectations and an improved 2021 growth outlook.
Moreover, following Friday’s jobs report, many analysts still see risks for USD as being tilted towards further downside; soft labour market data strengthens the case for further Fed action (dovish and USD negative) as well as more fiscal stimulus (risk on so USD negative).
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD holds on to intraday gains after upbeat US data
EUR/USD remains in positive ground on Friday, as profit-taking hit the US Dollar ahead of the weekend. Still, Powell's hawkish shift and upbeat United States data keeps the Greenback on the bullish path.
GBP/USD pressured near weekly lows
GBP/USD failed to retain UK data-inspired gains and trades near its weekly low of 1.2629 heading into the weekend. The US Dollar resumes its advance after correcting extreme overbought conditions against major rivals.
Gold stabilizes after bouncing off 100-day moving average
Gold trades little changed on Friday, holding steady in the $2,560s after making a slight recovery from the two-month lows reached on the previous day. A stronger US Dollar continues to put pressure on Gold since it is mainly priced and traded in the US currency.
Bitcoin to 100k or pullback to 78k?
Bitcoin and Ethereum showed a modest recovery on Friday following Thursday's downturn, yet momentum indicators suggest continuing the decline as signs of bull exhaustion emerge. Ripple is approaching a key resistance level, with a potential rejection likely leading to a decline ahead.
Week ahead: Preliminary November PMIs to catch the market’s attention
With the dust from the US elections slowly settling down, the week is about to reach its end and we have a look at what next week’s calendar has in store for the markets. On the monetary front, a number of policymakers from various central banks are scheduled to speak.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.