U.S. Dollar Advances Amid Risk Aversion
The U.S. dollar firmed against its major counterparts in
European trading on Monday, as a rapid surge in coronavirus cases
triggered worries about the pace of global economic recovery.
Friday's weak U.S. retail sales data suggested that a flare-up
in coronavirus infection has curbed the consumer spending in the
world's largest economy.
Janet Yellen will appear before the Senate Finance Committee on
Tuesday for her confirmation hearing as Treasury Secretary.
Yellen is expected to affirm that the value of the U.S. currency
should be determined by markets.
The Wall Street Journal reported that Yellen is unlikely to
affirm the stance of a weaker exchange rate, unlike her predecessor
U.S.-China tension prevailed as the Trump administration
notified several Huawei suppliers that it's revoking their licenses
to work with the Chinese firm.
U.S. markets remained closed on account of the Martin Luther
King Jr. holiday.
The greenback jumped to 0.8926 against the franc, its biggest
level since December 7. The dollar is poised to find resistance
around the 0.92 level.
The greenback appreciated to a 6-day high of 1.3520 against the
pound and a 1-1/2-month high of 1.2056 against the euro, from
Friday's closing values of 1.3576 and 1.2075, respectively. The
greenback is likely to challenge resistance around 1.34 against the
pound and 1.18 against the euro.
The greenback spiked up to near a 2-week high of 0.7659 against
the aussie, near 3-week high of 0.7096 against the kiwi and a
1-week high of 1.2799 against the loonie, compared to last week's
closing values of 0.7702, 0.7125 and 1.2737, respectively. On the
upside, 0.75, 0.68 and 1.299 are likely seen as its next resistance
levels against the aussie, the kiwi and the loonie,
The greenback recovered slightly to 103.84 against the yen, from
an Asian session's low of 103.69. This may be compared a 4-day high
of 103.93 set at 7:00 pm ET. If the greenback rises further, it may
find resistance around the 106.00 level.
Looking ahead, at 8:15 am ET, Canada housing starts for December
are scheduled for release.