Dollar on course for its biggest winning leg in two years

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American dollar, trade talk, US Federal Government shutdown trending points

  • Dollar has been reigning near 2019 high, since global growth worries weigh on euro and GBP falters on tottered PMI data and gross domestic product growth
  • US dollar has set the stage for its biggest winning streak in consecutive two years, since trade talk uncertainties had been keeping large buyers at bay
  • Australian dollar gains 0.3 percent and euro improves outlook amid an improved risk appetite

Dollar on course for its biggest winning leg in two years

On Tuesday, the 12thof February, the US dollar gains against most of the major currencies, while the emerging market currencies including Yuan and INR posted rare gains against USD, as market has been cheering a moderation of higher risk appetite following substantial improvement in the trade talk.

When this report is being prepared (February 12th) GMT.12.30, the US dollar has been trading at 96.45, hovering steadily versus most of the major peers, meanwhile US china trade tensions appear to be waning and global growth worries had been overshadowed by an improved investors’ confidence for safe-haven American dollar.

American dollar daily chart

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American dollar daily chart

Apart from that, the dollar has also met sheer optimism, as US Federal Government shutdown worries seemed to be deduced amid high-rated trade talk between US and China. Despite all of the progresses in the trade talk, there had also been pointy ends probing a much-debated discussion related to United States’ navies venture in the South China Sea.

However, this week’s development came forth, as the world’s largest two economic superpowers had been vying to hammer out a deal before the trade truce deadline, March 1st, GMT. 05.01.

In today’s US dollar greenback, the American dollar rose 0.1 percent against another safe-haven currency Japanese Yen to 110.47, the it also posted a tough gain against its derby-match Swiss Franc at 1.0040. The American dollar remains relatively unchanged during the Asia Pacific and early European trading session, as it has been trading at $1.1285 versus euro and $1.2852 against GBP.

GBP/USD daily price chart

GBP/USD daily price chart

However, today’s market could have provided support for the downbeat euro and grudging Great Britain Pound, as the bitterness in the global major currencies could have averted following upcoming comments from BoE governor and ECB this week.

EUR/USD daily price chart

EUR/USD daily price chart

Bottom Line 

At this moment, the American dollar appears to be voyaging strongly with a powerful wind supporting the greenback, meanwhile the next support levels for EUR/USD should be at a November, 2018 low at 1.1215 and GBP could retest its January low as well, if the Trump Administration could avert a US Federal Shutdown, expected to be started from February 15th.

Read more on EUR/USD here

[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]

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