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The greenback retreats after decent gains in trading yesterday
The key development overnight is that Trump has threatened not to sign the nearly $900 billion virus relief bill (⬆) and that is causing a bit of a stir in the market as we look towards the trading day ahead.
The reaction so far has been rather modest with S&P 500 futures dropping initially by a little over 20 points before paring that decline to just 6 points now.
In the currencies space though, the dollar is keeping weaker as the pullback yesterday eases and we are seeing more year-end positioning moves play out.
The mix of that and stimulus headlines is keeping things a bit more choppy as the year winds down but we’ll see if there is some appetite for the market to go running as in European and North American trading later today.
From a technical perspective, the dollar is holding its ground after having seen its Monday advance lose momentum and yesterday’s gains are also fizzling a little in trading today – so there hasn’t been any significant breakthroughs yet.
The dollar index is managing to hold above 90.00 for now but it still remains in a rather vulnerable spot all things considered:
