Fundamental Comment

Dollar falls ahead of slew of US economic data

Dollar falls ahead of slew of US economic data

The US dollar returned on Wednesday to retreat against major currencies after rising over the past two sessions, as risk appetite in the markets gradually caused a rise in both equity and commodity markets.

The dollar index, which measures the performance of the green currency against a basket of six major currencies, fell during today's trading to reach its lowest level at 90.25, after opening today's trading at the level of 90.52, and it is currently trading at the level of 90.37.

Later in the day, eyes will focus on important data from the U.S., including the weekly jobless claims, durable goods orders and personal spending. Initial jobless benefits probably slipped to 882,000 last week from a three-month high of 885,000 registered a week before. 

It seems that markets have absorbed the shocking rejection of President Donald Trump to sign the stimulus, as they deem that the increase in Americans checks would be enlarge the package and therefore help in boosting recovery. 

Also, the news showing the reopening of the borders between the United Kingdom and France for the transport of goods, which indicates the return to normal life after the discovery of a new highly contagious variation of Covid-19, managed to improve the sentiment and bolstered equities.  

As of 10:51 GMT, the Euro Stoxx 50 index of European stocks rose by 0.8%, the German DAX index rose by 0.84%, the French CAC 40 index rose by 0.78%, while UK FTSE 100 index declined by 0.09%.

It is worth noting that European stock indices recorded big gains at the start of the European session on Wednesday, before returning and losing some of these gains due to concerns about the Brexit crisis and increasing expectations of the inability to reach an agreement.

European Commission President Ursula von der Leyen continues, until the last moment, in attempts to reach a trade agreement between all parties before the Christmas holidays.

As for gold, prices witnessed a slight increase during today's trading after a decline that continued for three consecutive sessions. This slight increase in gold was due to the decline in the levels of the US dollar.

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