The new trading week has kicked off with uncertainty among investors. The current fundamental factors are still weighing on the US dollar. Traders refrain from opening long deals on the greenback due to the Fed’s decision to keep the interest rates near zero. This week, Fed Chairman Jerome Powell is going to address Congress from Tuesday to Thursday, discussing the economic stimulus needed to deal with the effects of the pandemic.
At the same time, concerns about the resumption of lockdown measures due to the second wave of the coronavirus boost demand for the US dollar as the safe-haven currency. Thus, the US dollar index started the weekly session with a sharp increase, rising above the level of 93.00. It is heading for last week’s highs at 93.50. The number of people infected with COVID-19 exceeded 31 million. Market participants are pricing in the possibility that the UK will re-introduce self-isolation requirements. Israel has already imposed a 3-week nationwide lockdown to contain the coronavirus spread.
The stock market is declining amid risk aversion. The major US indexes are dropping despite the news that Donald Trump approved the deal between Oracle and Walmart to buy TikTok. Yet, investors remain pessimistic.
The trading floors are closed in Japan for the holidays. They will open only on Wednesday. The yen/dollar pair is gaining momentum amid the rising demand for safe-haven assets. Yet, bears are likely to take an upper hand and the pair will decline to the level of 103.75.
The Australian dollar, which measures the risk sentiment in the Pacific and Asian sessions, is losing steam amid risk aversion. The pair’s trajectory is in line with our market experts’ forecasts. The AUD/USD pair is projected to dip under the 0.7249 level, aiming at the level of 0.7110. Such a scenario will unfold in the next two weeks.
FX Analytics – https://www.instaforex.com/forex_analytics
Forex Calendar – https://www.instaforex.com/forex_calendar
Forex TV from InstaForex – https://www.instaforex.com/instaforex_tv
Forex charts – https://www.instaforex.com/charts
Instant account opening – https://www.instaforex.com/fast_open_live_account
Forex Trading Contests – https://www.instaforex.com/forex_contests
List of official InstaForex blogs:
Tweets by instaforex
#forex_news # asian_session #instaforex_tv