Dollar firm as economic

TOKYO (Reuters) – Forex Signals || The dollar held ground against riskier currencies on Monday as weak economic data from Europe and fresh worries about the coronavirus supported investor demand for safe-havens, stretching greenback selling positions.

Signal FX

Economic activity in the euro zone shrank markedly in January as stringent lockdowns to contain the coronavirus pandemic hit the bloc’s dominant service industry hard while UK data showed British retailers struggled to recover in December.

British Prime Minister Boris Johnson also said on Friday there was evidence a new variant of COVID-19 discovered late last year could be associated with higher mortality.

The news came as bets against the dollar have become overcrowded, analysts said, with U.S. data on Friday showing net dollar short positions swelling to the largest since May 2011.

The dollar index stood at 90.247, flat on the day but off last week’s low of 90.043 set on Thursday.

The euro was also little changed at $1.2163, taking a pause after a 0.8% gain last week. The common currency is capped in part by signs of political instability in Rome.

Italian bond yields rose with spreads over German Bunds hitting their highest since November amid a political impasse for Prime Minister Giuseppe Conte who has so far failed to drum up a ruling majority in Italy’s parliament.

Nonetheless, Italy’s case demonstrates the widespread risks of political instability from popular discontent as communities grow weary of the pandemic. Dollar Edges Lower Pound Also Weak

“The stock markets’ rally during this pandemic is completely dependent on fiscal expansion and debt monetisation by central banks,” Noji said. “Political instability could delay fiscal measures.” Dollar Down But Fresh COVID-19 worries

In Washington, the honeymoon after Joe Biden’s inauguration as President last week means investors are hopeful that at least a part of his $1.9 trillion coronavirus relief plan will come through fairly soon. Forex -Signals – Dollar Weakness Likely Temporary

President Donald Trump expected early next month could complicate his efforts.

Forex Signals – The U.S. dollar was down

Best Currency Pairs

The dollar traded flat at 103.80 yen.

Dollar firm as economic

Live Forex News

Forex Signals

Forex Signals


Dollar Down But Fresh COVID-19 worries

Dollar firm as economic