FX Traders Exit Bearish Bets Against the USD

FX Traders Exit Bearish Bets Against the USD

#Dollar #Fed #virus #risk

$USD $DXY $EUR $GBP $JPY $CHF $CNY

The USD held onto gains Vs most currencies Thursday in Asia as signs of an economic slowdown in Europe and in the US revived concerns about the fallout from continuing virus infections.

EUR hit by worries about a return to severe lockdown restrictions, faces an additional hurdle later Thursday with the release of data on German business sentiment.

USD is likely to continue to rise as another spike in coronavirus cases in Europe boosts its safe-haven appeal, while Fed policymakers called on the US government to provide more fiscal support.

Risk is being sold across the board, and there is a big unwinding of USD Shorts, meaning investors abandoning Bearish USD bets.

USD traded at $1.1671 per EUR Thursday in Asia, just off of a 2-month high reached on Wednesday.

The Buck held near a 9-wk high Vs the Swissie at 0.9225, and also held on to gains made in the prior session against the Japanese currency, to stand at 105.42 JPY

GBP bought $1.2732, near its weakest mark Vs the USD since late July.

In the onshore market, the RMB Yuan held steady at 6.8145 per USD.

The .DXY stood at 94.302 Vs a basket of 6 peer currencies Thursday, close to a 9-Wk high.

Have a healthy day, Keep the Faith!

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Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.