Dollar change virus mutation rattles traders

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Live Forex Signals News | FxPremiere.com

3 min readDec 22, 2020

Dollar change virus mutation rattles traders

FxPremiere FX Signals — SINGAPORE (Reuters) — The dollar was firm on Tuesday but traded well below peaks hit on a wild ride higher overnight, as a new coronavirus strain in Britain continues.

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The pound, helped by a Bloomberg report which said the European Union was considering a compromise on fishing rights — a stumbling block to a trade deal — recovered to trade at $1.3418 in Asia, though it remained on edge as talks progress.

The euro recovered to sit at $1.2229 on Tuesday after falling a cent to $1.2130. The yen was steady at 103.30 per dollar and the Australian and New Zealand dollars a little soft with the nervous mood, but well above overnight lows.

“The euro found an abundance of buyers on the deep dip,” said Stephen Innes, Bangkok-based chief strategist at currency broker Axi. Dollar Gains as Virus Surge Prompts Flight to Safety

“The ‘short dollar’ clear-out is probably nothing more nefarious than stretched positioning getting taken out to the woodshed on Brexit scares. However, it shows the potential dangers of universally bearish dollar sentiment,” he said.

The value of overall bets against the dollar eased a fraction last week, positioning data showed, but remains near nine-year highs struck in September. Dollar firm as virus’ spread and stimulus stalemate raise caution

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The dollar index was last at 90.145 having been as high as 91.022 overnight. Nerves over the new strain of coronavirus are keeping it above last week’s 2–1/2 year trough of 89.723. Dollar loses out on growing optimism about virus vaccine

Investors are looking ahead to confidence data in the U.S. and Germany later on Tuesday and have been cheered by the expectation that stimulus checks could go out to Americans next week. Britain says Brexit trade deal

British Prime Minister Boris Johnson has warned that there are still “problems” in securing a trade deal with Europe.

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Dollar change virus mutation rattles traders