U.S. Dollar Declines On Virus, Biden's Transition Fears
November 17 2020 - 12:14AM
RTTF2
The U.S. dollar weakened against its major opponents in the
European session on Tuesday, as a return of coronavirus
restrictions in some U.S. states and the Trump administration's
refusal to coordinate with Biden's transition team weighed on the
currency.
Biden on Monday warned of dire consequences if the Trump
administration continues to resist cooperation with his transition
team on the coronavirus pandemic and block briefings on national
security, policy issues and vaccine plan.
Concerns over a smooth transition of power to President-elect
Joe Biden kept sentiment subdued.
Global Covid-19 cases topped 55 million today with more than 1.3
million deaths, according to the Johns Hopkins University.
Federal Reserve Vice Chair Richard Clarida said on Monday that
more support would be needed from fiscal and monetary authorities
to ensure a strong recovery from the coronavirus pandemic.
Investors await the release of U.S. retail sales and industrial
production later in the day to assess the health of the
economy.
The greenback slipped to 8-day lows of 1.1876 against the euro,
104.24 against the yen and 0.7340 against the aussie, from its
early highs of 1.1843, 104.60 and 0.7301, respectively. The
currency is seen challenging support around 1.20 against the euro,
100 against the yen and 0.75 against the aussie.
The greenback fell to a 6-day low of 1.3256 against the pound,
off an early high of 1.3183. The greenback may challenge support
around the 1.34 level.
The greenback reached as low as 0.9099 against the franc, down
from a high of 0.9129 set at 2:15 am ET. Next key support for the
currency is likely seen around the 0.88 region.
The greenback remained lower at 0.6910 against the kiwi, after
having dropped to a 1-1/2-year low of 0.6919 in the previous
session. Immediate support for the currency is possibly seen around
the 0.72 region.
The U.S. currency pulled back to 1.3065 against the loonie, from
a high of 1.3090 seen at 3:00 am ET. On the downside, 1.28 is
likely seen as its next support level.
Looking ahead, at 8:15 am ET, Canada housing starts for October
are due.
Canada wholesale sales for September, U.S. retail sales, import
and export prices and industrial production, all for October, NAHB
housing market index for November and business inventories for
September will be released in the New York session.
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