Dollar is dominating the market

22 December, 2016

US Dollar
The Dollar trades with a little change against other major currencies, sticking near the 14-year highs along with the spike in risk aversion after the tragic events of Monday and the positive rate hike expectations for the US next year. USD Index which tracks the greenback against a trade-weighted basket of six major rivals is stable at 103.27, trading near 103.62 level which it reached on last  Thursday.

Market performance suggests trading volumes are limited ahead of the Christmas holidays.

Gold

XAU/USD prices plummeted to an 11-month low at the end of last week, as the US dollar was gaining traction and concerns over further tightening of US monetary policy is weighing down on the prices. DXY rose nearly 6% after the US elections in early November, due to expectations of faster growth in the US economy during the new.

Eurozone

Market sentiments are deteriorated after Russia’s ambassador, Andrei Karlov was shot dead in Turkey at an art gallery. A few hours later a truck crashed Christmas fair in the centre of Berlin killing 12 people and injuring around 50. An outbreak of terrorism in Europe is a negative factor for the markets, weighing down on Euro.  Euro is stable against the Greenback at 1.0393 after the fresh 14-year low of 1.0349 it reached yesterday.

GBP/USD fell by 0.25% to 1.2333, trading near a one-month low of 1.2310 it reached on Thursday. Earlier on Wednesday, the Office for National Statistics said that UK net borrowing in public sector grew in November by £12.21 billion, compared to the initial projections of £11,30 billion increase. In October the figure rose by £4.32 billion and revised from £4,30 billion.

Currencies

USD/JPY fell by 0.25% to 117.56, while USD/CHF trades stable at 1.0290. The Australian Dollar weakened, AUD/USD lost 0.15% trading at 0.7249, while the pair NZD/USD trades almost unchanged at 0.6911.


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