Dollar Gains Against Peers

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The U.S. dollar scored notable gains over its peers on Tuesday with rising concerns about a new variant of coronavirus infection that is raging in Britain.

The surge in cases has prompted authorities to impose trade restrictions. Markets also noted economic data from Europe and Asia, and updates on Brexit negotiations.

Traders were also reacting to news about the U.S. Congress passing an $892 billion Covid-19 aid package, and the latest batch of U.S. economic data.

Revised data released by the Commerce Department on Tuesday showed the U.S. economy grew by slightly more than previously estimated in the third quarter of 2020.

The report showed the spike in gross domestic product in the third quarter was upwardly revised to 33.4% from the previously reported 33.1%. Economists had expected the jump in GDP to be unrevised.

A report from the National Association of Realtors showed existing homes sales in the U.S. tumbled by 2.5% to an annual rate of 6.69 million in November after jumping by 4.4% to a revised rate of 6.86 million in October.

The Conference Board said its consumer confidence index slid to 88.6 in December from a downwardly revised 92.9 in November. Economists had expected the consumer confidence index to inch up to 97.0 from the 96.1 originally reported for the previous month.

The dollar index, which rose to 90.72 around late morning, was last seen at 90.62, up 0.5% from previous close.

Against the Euro, the dollar firmed up to $1.2162, gaining about 0.7%.

The Pound Sterling was fetching $1.3364 a dollar, about 0.8% less than on Monday. The U.K.’s gross domestic product grew by a record 16% sequentially instead of 15.5% expansion estimated previously. GDP had fallen by revised 18.8% in the second quarter.

The Yen was weaker by about 0.4% at 103.64 a dollar.

The Aussie was weaker with the AUD-USD pair quoting at 0.7526.

The Swiss franc was weaker at CHF 0.8894 a dollar, and the Loonie was down 0.4% at 1.2908 a dollar.

The U.S. Senate voted 91-7 late Monday to approve both the coronavirus aid package and a full-year spending bill that will fund federal government activities through September 2021.

The House of Representatives passed the package earlier on Monday. The bill now heads to the White House, where President Trump is expected to sign it into law.

The material has been provided by InstaForex Company – www.instaforex.com

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