Dollar Edges Higher as Rising Covid

FxPremiere.com – Telegram Forex Signals; The dollar pushed higher in early European trade Monday, rebounding from multi-year lows as Covid-19 cases continue to mount and lockdowns expand, weighing on the U.S. economic recovery.

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EUR/USD dropped 0.1% to 1.2117, having climbed on Friday as high as 1.2177, a level last seen in April 2018. USD/JPY was largely unchanged at 104.11, while the risk-sensitive AUD/USD was flat at 0.7420, not far off its highest level in more than two years.

Dollar Gains as Virus Surge Prompts Flight to Safety

On Sunday, California Governor Gavin Newsom ordered large parts of the most populous U.S. state to close down again as Covid-19 cases spiked to record levels.

Dollar Edges Higher; Sterling Expects Brexit Progress

California reported more than 30,000 new cases on Sunday, exceeding the state’s previous high, and marked a new record for hospitalized Covid-19 patients. New Jersey, North Carolina, Virginia and West Virginia also announced record one-day rises in new infections.

This wave of cases is likely hitting the U.S. economic recovery, as evidenced by Friday’s non-farm payrolls growing by 245,000 in November, much lower than October’s rise of 610,000, and the smallest gain recorded since May.

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However, the gains to the safe haven dollar from this backdrop have been limited, amid growing confidence there will be new fiscal stimulus to boost the U.S. economy; as a bipartisan group of lawmakers look to get through a $908 billion bill this week.

Forex – Dollar Edges Higher

British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen are due to hold a call on Monday evening; but these negotiations appear to be going right to the edge amid reports Johnson is prepared to walk away.

Dollar Down Over Rise in COVID

Given the gains sterling has made over the last few weeks, the downside on no trade deal looks substantial.

Forex Signals – Dollar Edges Higher

Additionally, the U.S. Federal Reserve and the European Central Bank meet this week to set policy, with the ECB seen as more likely to ramp up stimulus.

Dollar Edges Higher

Elsewhere, GBP/USD dropped 0.9% to 1.3314, retreating from the two-and-a-half year high of $1.3540 seen on Friday, after talks over the weekend stalled over issues such as fishing rights waters around the U.K., fair competition and ways to solve future disputes.

Dollar Edges Higher as Rising Covid