December 17, 2020
Daily FX Market Roundup December 17, 2020
Risk appetite remains strong with equities and currencies extending their gains on Thursday. The growing prospect of a stimulus deal in the US and a Brexit agreement in the UK drove investors out of safe have currencies like the US dollar and Japanese Yen. High beta currencies took flight with strong gains in sterling, the New Zealand and Australian dollars. The greenback fell to fresh 2.5 year lows on the back of mostly weaker data. Although building permits rose strongly, housing starts grew at a slower pace, the Philadelphia Fed index tumbled to 11.1 from 26.3, a reading that was much weaker than anticipated. Most importantly, jobless claims continued to rise from 853K to 885K, reinforcing Fed Chairman Powell’s plans to keep interest rates at zero for the next few years.