Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Down Over Weak U.S. Data, But Vaccine Optimism Lingers

ForexNov 25, 2020 09:15PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – The dollar was down on Thursday morning in Asia, subdued by weak U.S. economic data but with lingering optimism over the development of a COVID-19 vaccine leading investors to riskier assets tied to global commodities and emerging markets.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.09% to 91.918 by 10:05 PM ET (2:05 AM GMT), its lowest level in more than two months. It was also close to its weakest in more than two months against the euro.

The dollar also took a hit after data released on Wednesday showed that the U.S.’s GDP grew 33.1% quarter-on-quarter during the third quarter, just missing the 33.1% growth in forecasts prepared by Investing.com but unchanged from the second quarter.

The data also showed 778,000 jobless claims for the past week, higher than the forecast 730,000 claims and the 748,000 claims submitted during the previous week. There were grim warnings that even more job losses could be on the way, with many states imposing restrictive measures to curb the spiking number of COVID-19 cases.

The number of global COVID-19 cases has surpassed 60 million as of Nov. 26, of which over 12.7 million are U.S. cases, according to Johns Hopkins University data.

Positive data for three vaccine candidates’ efficacies, and a smoother transition to the Joe Biden administration in the U.S than appeared to be likely, saw a recent turn towards riskier currencies and emerging market assets. Although the dollar’s subsequent fall was rapid enough to open the possibility of a rebound in the short term, some investors warned that a longer-term decline could be possible and are already shifting their positions in anticipation of the COVID-19 outbreak waning in 2021.

“A China-led recovery in the global economy and commodities should benefit commodities currencies … the outlook is good, but we are reaching levels where authorities might feel some concern. Other emerging market currencies with good fundamentals should benefit,” Mizuho Securities chief currency strategist Masafumi Yamamoto told Reuters.

The USD/JPY pair edged down 0.11% to 104.33.

The AUD/USD pair inched up 0.03% to 0.7366, while the NZD/USD pair inched down 0.01% to 0.7003. The AUD traded near its highest since September, boosted by improved risk appetite and strong demand in China for Australian commodities exports. Meanwhile, the NZD was trading near its strongest level in over two years.

The USD/CNY pair edged down 0.11% to 6.5674. Investors will monitor the onshore yuan to see if the yuan moves towards the 29-month high seen during the previous week.

The GBP/USD pair inched up 0.09% to 1.3394. The pound was near its strongest level against the dollar since Sep. 2, while holding steady against the euro. Investors await details on the Brexit trade talks between the U.K. and the European Union this week.

The Asian session saw small moves overall as the U.S. markets close for the Thanksgiving holiday.

Dollar Down Over Weak U.S. Data, But Vaccine Optimism Lingers
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email