FOREX
The dollar continues to lose ground to other major currencies, during early Friday trading. The US dollar index declined by more than 1.3% this week, a sign of weakness that can be explained by two main factors: The prevalence of a risk-on stance in the financial markets, fuelled by positive news arising from Europe and progress being made in the quest to produce a vaccine for COVID-19, that diminishes the safe haven allure that supported the greenback during some of the darker times of the pandemic.
The second factor, contrasting with other countries that appear to have managed the situation better, is the deteriorating health crisis in the US, forcing a reversal in some states that had reopened for business and casting doubts over the country’s ability to drive a speedy economic recovery.
USD index
Ricardo Evangelista – Senior Analyst, ActivTrades
