FOREX: US Dollar Slides from Three-Month High
FOREX: The dollar hit a three-month high Monday due to flight-to-safety buying but slipped later in the day as Treasury yields dropped sharply.
With no key US data on Monday, markets keyed on increased concerns that the Delta variant of COVID-19 could slow or halt the global recovery.
A summary of Monday’s foreign exchange action shows that EUR-USD began the day at three-month lows near 1.1764 but recovered to over 1.1820 as investors turned toward bonds for safety and sold off stocks for profit-taking.
The dollar will get the better of the trade if investors continue to sell off stocks as protection.
GBP-USD hit fresh lows as dollar demand rose.
In addition, the full reopening of UK businesses scheduled for Monday saw a false start as COVID cases are on the rise, forcing some businesses to delay their long-awaited plans to finally be fully open.
USD-JPY slipped to near two-month lows of 109.07 by mid-morning, down from 110.04 in London morning trade as interest in the relatively stable yen exceeded the dollar’s draw as a currency of safety. The pair fell below the 100-day moving average for the first time since January.
USD-CAD was the highest in over five months to start the day, due in large part to a sharp decline in oil prices before slipping back to 1.2630. Dollar buying will continue to support the pair going forward until the impact of the Delta variant is clearer or oil prices rebound.
FOREX: US Dollar Slides from Three-Month High
