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The dollar edged higher on Wednesday as a recent rise in stocks appeared to be winding down, but holiday-thinned trade meant markets were displaying little meaningful direction.
The dollar index, which measures the greenback against key peers, reached 96.240 during the day, up from Monday's closing of 96.068, and advanced against most other major currencies after the euro fell 0.14 percent on Tuesday.
The euro was last trading at $1.1305, while the pound fell from a five-week high to $1.3433.
Analysts said it was difficult to read too much into the swings because many traders had taken time off for Christmas or the end of the year.
"Things are basically noise right now," said Kyle Rodda, an analyst at IG Markets. "We're definitely seeing a soft risk-on/risk-off dynamic going on with stocks down somewhat, and the dollar has caught a bid on the inverse of that."
The Fed is widely projected to begin raising rates before many other major central banks, including the European Central Bank, which has helped the dollar index have its best year since 2015 in 2021.
MSCI's broadest index of Asian shares outside Japan fell 0.3 percent on Wednesday, while the S&P 500 and Nasdaq Composite also closed slightly lower overnight, despite the fact that the S&P 500 had gained for four straight days and touched a record intraday high earlier in the session.
Markets have been mostly trading based on shifting assessments of the impact of the Omicron version of COVID-19, with the recent bounce in risk assets such as equities based on the belief that the new strain will not significantly disrupt the global economic recovery.
On Monday, U.S. health officials reduced the recommended isolation time for Americans with asymptomatic COVID-19 cases to five days, down from ten days previously.
The yen, which had been sinking alongside the stock market's gains, pared its losses on Wednesday. It was recently at 114.82 per dollar, down from 114.94 on Tuesday.
The dollar was also bolstered by a jump in two-year Treasury yields, which reached 0.758 percent on Tuesday, a near two-year high, before falling little to 0.7461 percent.
The Australian dollar remained stable at $0.7232.
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
The dollar edged higher on Wednesday as a recent rise in stocks appeared to be winding down, but holiday-thinned trade meant markets were displaying little meaningful direction.
The dollar index, which measures the greenback against key peers, reached 96.240 during the day, up from Monday's closing of 96.068, and advanced against most other major currencies after the euro fell 0.14 percent on Tuesday.
The euro was last trading at $1.1305, while the pound fell from a five-week high to $1.3433.
Analysts said it was difficult to read too much into the swings because many traders had taken time off for Christmas or the end of the year.
"Things are basically noise right now," said Kyle Rodda, an analyst at IG Markets. "We're definitely seeing a soft risk-on/risk-off dynamic going on with stocks down somewhat, and the dollar has caught a bid on the inverse of that."
The Fed is widely projected to begin raising rates before many other major central banks, including the European Central Bank, which has helped the dollar index have its best year since 2015 in 2021.
MSCI's broadest index of Asian shares outside Japan fell 0.3 percent on Wednesday, while the S&P 500 and Nasdaq Composite also closed slightly lower overnight, despite the fact that the S&P 500 had gained for four straight days and touched a record intraday high earlier in the session.
Markets have been mostly trading based on shifting assessments of the impact of the Omicron version of COVID-19, with the recent bounce in risk assets such as equities based on the belief that the new strain will not significantly disrupt the global economic recovery.
On Monday, U.S. health officials reduced the recommended isolation time for Americans with asymptomatic COVID-19 cases to five days, down from ten days previously.
The yen, which had been sinking alongside the stock market's gains, pared its losses on Wednesday. It was recently at 114.82 per dollar, down from 114.94 on Tuesday.
The dollar was also bolstered by a jump in two-year Treasury yields, which reached 0.758 percent on Tuesday, a near two-year high, before falling little to 0.7461 percent.
The Australian dollar remained stable at $0.7232.
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.