Dollar Down Over Weak U.S. Data, But Vaccine Optimism Lingers By Investing.com


© Reuters.

By Gina Lee

Investing.com – The dollar was down on Thursday morning in Asia, subdued by weak U.S. economic data but with lingering optimism over the development of a COVID-19 vaccine leading investors to riskier assets tied to global commodities and emerging markets.

The that tracks the greenback against a basket of other currencies inched down 0.09% to 91.918 by 10:05 PM ET (2:05 AM GMT), its lowest level in more than two months. It was also close to its weakest in more than two months against the euro.

The dollar also took a hit after data released on Wednesday showed that the U.S.’s grew 33.1% quarter-on-quarter during the third quarter, just missing the 33.1% growth in forecasts prepared by Investing.com but unchanged from the second quarter.

The data also showed for the past week, higher than the forecast 730,000 claims and the 748,000 claims submitted during the previous week. There were grim warnings that even more job losses could be on the way, with many states imposing restrictive measures to curb the spiking number of COVID-19 cases.

The number of global COVID-19 cases has surpassed 60 million as of Nov. 26, of which over 12.7 million are U.S. cases, according to Johns Hopkins University data.

Positive data for three vaccine candidates’ efficacies, and a smoother transition to the Joe Biden administration in the U.S than appeared to be likely, saw a recent turn towards riskier currencies and emerging market assets. Although the dollar’s subsequent fall was rapid enough to open the possibility of a rebound in the short term, some investors warned that a longer-term decline could be possible and are already shifting their positions in anticipation of the COVID-19 outbreak waning in 2021.

“A China-led recovery in the global economy and commodities should benefit commodities currencies … the outlook is good, but we are reaching levels where authorities might feel some concern. Other emerging market currencies with good fundamentals should benefit,” Mizuho Securities chief currency strategist Masafumi Yamamoto told Reuters.

The pair edged down 0.11% to 104.33.

The pair inched up 0.03% to 0.7366, while the pair inched down 0.01% to 0.7003. The AUD traded near its highest since September, boosted by improved risk appetite and strong demand in China for Australian commodities exports. Meanwhile, the NZD was trading near its strongest level in over two years.

The pair edged down 0.11% to 6.5674. Investors will monitor the onshore yuan to see if the yuan moves towards the 29-month high seen during the previous week.

The pair inched up 0.09% to 1.3394. The pound was near its strongest level against the dollar since Sep. 2, while holding steady against the euro. Investors await details on the Brexit trade talks between the U.K. and the European Union this week.

The Asian session saw small moves overall as the U.S. markets close for the Thanksgiving holiday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here