Dollar Rebounds, Posts Notable Gains Against Peers
The U.S. dollar gained in strength against its peers on Friday as risk sentiment waned amid uncertainty about a Brexit deal and the continued impasse over U.S. stimulus talks.
The surge in coronavirus cases in several countries across the world and tighter restrictions on businesses in several places contributed as well to dollar’s uptick.
Talks on U.S. stimulus failed to make progress, with Democrat House Speaker Nancy Pelosi indicating that negotiations could stretch beyond Christmas if necessary.
U.S. producer prices edged slightly higher in the month of November, according to a report released by the Labor Department. The report said the producer price index for final demand inched up by 0.1% in November after climbing by 0.3% a month earlier.
According to a preliminary report from the University of Michigan, U.S. consumer sentiment has unexpectedly improved in the month of December. The report said the consumer sentiment index climbed to 81.4 in December from 76.9 in November. The increase surprised economists, who had expected the index to edge down to 76.5.
The dollar index, which advanced to 91.04 in the European session, was last seen at 90.98, up 0.17% from previous close.
Against the Euro, the dollar firmed up to $1.2115, gaining about 0.22%.
The Pound Sterling weakened to $1.3323 a unit, giving up over 0.5% due to increasing possibility of a no-deal Brexit.
After months-long talks and with just three weeks to go until the end of the transition period, British Prime Minister Boris Johnson said there is now a “strong possibility” the U.K. will leave the EU without a deal.
European Commission President Ursula von der Leyen also said there was a “higher probability for no deal than deal.”
The Yen was stronger at 104.03 a dollar, firming up from 104.22 on Thursday evening.
The Aussie was little changed against the greenback, with the AUD-USD pair quoting at 0.7537, compared to 0.7535 yesterday.
Against Swiss franc, the dollar was stronger with the dollar-franc pair at 0.8894, nearly 0.4% up from previous close.
The Loonie weakened to 1.2772 a dollar, losing about 0.25%.
The material has been provided by InstaForex Company – www.instaforex.com