The euro was the standout performer on a largely facing risk that particular day which ordinarily favor conventional FX safe havens such the USD as well as JPY. After rebounding a supporting tool in the form of recent lows, the EUR/USD gained 0.4 percent but was unable to hold above the 1.1300 level. CHF also fared well against the dollar, rising 0.3 percent, whereas USD/JPY fell 0.1 percent but held close to the 113.50 mark. The EUR/USD climbed 0.4 percent after regaining support in the form of previous lows but was unable to maintain above the 1.1300 level. CHF gained 0.3 percent versus the dollar, while USD/JPY dipped 0.1 percent but remained close to the 113.50 level.
The Canadian currency was the weakest performance of the bunch, falling 0.4 percent against the dollar on the day due to selling pressure and choppy crude oil markets. The Canadian currency was the weakest performance of the bunch, falling 0.4 percent against the dollar on the day due to selling pressure and choppy crude oil markets.
AUD/USD, on the other hand, was down just 0.1 percent on that particular day and satisfied to spend the majority of it holding just above the 0.7100 mark. Traders in Australia will be watching for more signs received by the RBA that it is likely to go in an aggressive direction when the minutes of the most recent RBA meeting are released at 0030GMT on Tuesday.
In the aftermath of last week’s much higher than the prediction made by the November labor market report in Australia, it appears that the RBA will totally halt its QE program in February. The hike in the timing rate is another prominent issue, with markets anticipating the RBA to hint at some point that the market will witness a rise after the pandemic as early as 2022 instead of the forecast made in 2023.
In the meanwhile, the NZD/USD was 0.3 percent lower after testing, but eventually maintained above all, assistance like that of yearly lows at the 0.6700 level, while the GBP/USD was down roughly 0.2 per cent on that particular day. As talk grows about potential UK lockdowns to stop the increasing Omicron flood, the GBP/USD found support lows in the 1.3170s in recent months range and finished the US trade just north of 1.3200. It’s unlikely that a lockdown will occur thus close to Christmas. On the other hand, anything is possible, as UK Prime Minister Boris Johnson has made everything clear in his speech that day.
The currency’s fast rise was sparked by President Recep Erdogan’s announcement of unconventional new measures aimed at reducing the impact of the exchange rate volatility on Turkish savers.
The President has also made an announcement that the government will pay domestic TRY accounts for losses sustained due to decline in the TRY/USD exchange rate. According to some analysts and traders, these anti-dollarization initiatives amount to a “hidden” interest rate hike backed by the government.