Dollar slips toward 2020 low as history reminds traders not to sleep on FX around Thanksgiving - MarketWatch

-

Dollar slips toward 2020 low as history reminds traders not to sleep on FX around Thanksgiving - MarketWatch

Dollar slips toward 2020 low as history reminds traders not to sleep on FX around Thanksgiving - MarketWatch

Posted: 25 Nov 2020 12:31 PM PST

The U.S. dollar did it again --- falling to a multi-month low versus the euro on Wednesday, pushing a closely followed gauge of the U.S. currency's strength against major rivals back toward its 2020 low and reinforcing one analyst's reminder not to sleep on the currency market in the run-up to Thanksgiving.

The euro EURUSD, -0.04%  was up 0.2% at $1.1922, pushing above the $1.19 level for the first time since early September, according to FactSet. The ICE U.S. Dollar Index DXY, +0.05%, a measure of the U.S. currency against a basket of six major rivals, was down 0.2% at 91.99, after trading as low as 91.93 --- not far off the more-than-two-year low of 91.75 set on Sept. 1. The euro is the largest-weighted component of the DXY.

The euro's pre-Thanksgiving move, while not huge in absolute terms, continued a pattern that's seen major currencies score milestones versus the dollar around the holiday, noted Kathy Lien, managing director of FX strategy at BK Asset Management, in a note late Tuesday.

She recalled:

'In 2019, USD/JPY hit a 6 month high the day before Thanksgiving while EUR/USD hit a 1 month low the day after Thanksgiving. There were no milestones in 2018, but in 2017 EUR/USD and GBP/USD hit a 1 month high Thanksgiving Day while USD/JPY fell to a 2 month low the day before Thanksgiving. In 2016, the EUR/USD dropped to an 11 month low the week of Thanksgiving while USD/JPY rose to a 7 month high. There was no meaningful movement in sterling that year. In 2015, EUR/USD and GBP/USD fell to a 7-month low the week of Thanksgiving as USD/JPY consolidated. In most cases, the trend that was in place immediately before the holidays continued.'

The dollar rallied as the pandemic ravaged the global economy earlier this year, triggering a global scramble for the U.S. currency that lifted the DXY to a more-than-three-year high in March. Actions by the Federal Reserve and other policy makers to relieve a global shortage and to ease monetary and fiscal policy then saw the dollar decline, with losses accelerating over the course of the year. Many analysts have argued the dollar is likely now in a longer-term downtrend.

The dollar has weakened in November as stocks rallied in response to positive news on COVID-19 vaccines and as uncertainty around the Nov. 3 presidential election passed. Losses on Friday followed data that showed a second consecutive week of rising jobless claims.

"Today's unemployment claims data has fuelled concerns that a renewed economic downturn has begun thanks to the latest lockdowns. Many businesses have closed down during the pandemic for good and many jobs will never return," said Fawad Razaqzada, analyst at Think Markets, in a note.

Doubts may be emerging about whether as sharp of a recovery as has been priced in by financial markets over the past several months will materialize.

"This should mean lower Fed interest rates for longer, keeping the pressure on the greenback," he said.

The dollar remained lower Wednesday after minutes of the Fed's last policy meeting earlier this month showed that most officials want to give clearer guidance to investors about the Fed's massive bond-buying program, including what economic conditions would need to be met before the purchases cease.

InteractiveCrypto fast becoming traders favourite crypto news platform - ForexLive

Posted: 26 Nov 2020 02:12 AM PST

[unable to retrieve full-text content]InteractiveCrypto fast becoming traders favourite crypto news platform  ForexLive

Comments

Post a Comment

Popular posts from this blog

NZD/USD drops from weekly highs post-dismal ADP report, meanders around 0.6630s - FXStreet

-
Image
The NZD/USD snaps two consecutive days of gains, down 0.15%, amid a positive market mood. The US ADP employment report was dismal, though it barely influenced the US dollar. NZD/USD is downward biased, and failure to break above a downslope trendline opened the door for the YTD low. The New Zealand dollar climbs but retreats from weekly highs around 0.6662 after mixed than foreseen NZ jobs report released in the Asian session. At the time of writing, the NZD/USD is trading at 0.6637. The US ADP Employment report was ignored by investors as they prepare for Friday's NFP An hour and a half before Wall Street's opened, the ADP Jobs report was released. The figures were dismal, showing the losses of more than 301K employments when polled economists expected at least 207K private jobs added to the economy.  The ADP Chief Economist said that "The labor market recovery took a step back at the start of 2022 due to the effect of the Omicron va...
Read more

Position Sizer Expert Advisor for MT4/MT5 - EarnForex News

-
Image
Position Sizer (MetaTrader expert advisor) calculates how many lots to trade based on: Entry and stop-loss levels Risk tolerance Account size (balance, equity, or even your savings account) Account currency Currency exchange rates Its main features include: Works with any trading instruments — currency pairs, CFDs, equities, indices, commodities, futures, cryptocurrencies. Calculation inputs and results are displayed in a graphical panel. The panel can be moved freely across the chart. You can easily close or minimize it. All calculation parameters can be adjusted inside the panel in one or two mouse clicks. Entry, stop-loss, and take-profit lines can be dragged directly on the chart. You can choose to set stop-loss and take-profit as distance in points. Alternatively, you can set them as multiples of ATR (Average True Range). If a take-profit is given, the calculator shows the potential reward level and the risk-...
Read more

Wyckoff Method: Rules, Accumulation, and Distribution - Investopedia

-
Image
Legendary technician Richard Wyckoff wrote about financial markets in the early decades of the 20th century at the same time as did Charles Dow, Jesse Livermore, and other iconic market analysis figures. His pioneering approach to technical analysis known as the Wyckoff Method has survived into the modern era. It continues to guide traders and investors in the best ways to pick winning stocks, the most advantageous times to buy them, and the most effective risk management techniques to use. Wyckoff's observations on price action coalesced into what's known as the Wyckoff market cycle. It's a theory that outlines key elements in price trend development that are marked by periods of accumulation and distribution. Four distinct phases comprise the cycle: accumulation, markup, distribution, and markdown. Wykoff also defined rules to use in conjunction with these phases. These rules can further help to identify the location and significance of price within the broad s...
Read more