Forex, dollar index nailed to multi-year lows, euro points to 1.20


NEW YORK (Reuters) – The dollar index remains at low levels, canceling the fractional recovery after the data on the ‘core’ pce index.

The greenback was affected by the decidedly contrasted reading of the US macro numbers and of course also by the constant spread of Covid-19 infections in the United States.

On a monthly basis, the dollar has burned almost 5% at the index level and is preparing to archive the worst performance for about ten years.

The euro briefly touched $ 1.19 – a new high since May 2018 – and has achieved the best result since 2010 against the US currency.

From a technical point of view, the next target on the euro / dollar charts is the 1.20 threshold.

The increase in short positions on the dollar, insiders explain, can also be linked in part to geopolitical tensions, to which internal politics have been added since yesterday in view of the presidential elections on 3 November.

Donald Trump has evoked the possibility of a postponement, arousing heated controversy not only with the Democrats but with the entire Congress.


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