Commodity News
HeadLine : Dollar pokes higher as U.S. soft data sours mood; China GDP in focus
Date : Jan 18 2021
The dollar held late-week gains on Monday as softening U.S. economic data and rising coronavirus cases turned investors cautious. Against a basket of currencies the dollar hovered around a one-month high of 90.887 hit in early trade and the mood also supported the safe-haven yen against other majors. The euro eased slightly to touch a six-week low of $1.2066 and the risk-sensitive Australian dollar slipped 0.3% to a one-week low of $0.7679. Trade was choppy and moves modest ahead of of a raft of Chinese economic data, including GDP numbers due mid-morning, with fourth quarter GDP expected to show a further pickup in growth to 6.1% year-on-year. The safety bid has added to support for the dollar since the Democrats won control of U.S. Congress a fortnight ago, which triggered a surge in U.S. yields as investors priced in fewer fetters on a borrow-and-spend administration. The dollar index is up about 1.9% since then and the euro, which surged in 2020, has slipped more than 2% as the dollar's bounce has coincided with surging virus cases and a political crisis in Italy that have cast doubt on the region's recovery. Sterling on Monday sat at a one-week low of $1.3567 and the yen was steady at 103.83 per dollar, although it advanced to a three-week high of 125.29 per euro. U.S. retail sales fell for a third straight month in December, data showed on Friday, as renewed measures to slow the spread of COVID-19 triggered job losses.

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