23 December, 2016
The greenback loses some advantage on Thursday as it is descending from a 14-years peak against a basket of currencies. The investors decided to lock profit before the release of a bevy of economic figures. The Dollar index dipped by 0.04% to 102.98 stepping back from the highest levels of December 2002 it reached last week.
Although, trade volume is expected to shrink before Christmas for a short term period, the market’s attention will be focused on the US economic indicators, including the revised GDP in from July to September, orders for durable goods in November, and weekly applications for unemployment benefits.
The Dollars index rose more than five percent after the US presidential elections on November 8th, as traders bet on the budget expenditures increase and inflation pickup. The European currency rose by 0.12% to $1.0435, rebounding from $1.0352, the lowest level since January 2003.
Monte dei Paschi concerns
The European single currency could be under pressure, as investors speculate about the future of Monte dei Paschi di Siena bank, which is Italy’s third-largest lender. The desperate rescue attempts of the world’s oldest banks plan failed, what makes a state aid intervention inevitable.
The Oil prices fell slightly during the morning trading on Thursday, giving away the advantages of the weakening Dollar and pushing for the optimism around the global pact to cut the output.
The Brent oil futures fell by 0.09% to $54.41 per barrel. The WTI benchmark traded 0.13% higher at $ 52.42. The weakness of the Dollar triggered the profit taking, by investors, who supported prices for raw materials. At the same time, the growth was kerbed due to data released yesterday signalling an unexpected increase in the US inventories and a statement from Libya about increasing the production in the upcoming months.
The Greenback has certainly taken all chances to become an outsider on the Forex market this week...
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