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Major Forex Pairs Hit Highs As US Dollar Struggles

Updated on
  • EUR/USD took particular advantage of Greenback weakness
  • GBP/USD forex pair also staved off Brexit fears to remain high
  • USD heading for 2020 showing few positive signs

Weak trading for the US Dollar across the board leaves us looking at a seemingly difficult start to 2020 for USD led forex pairs. There has been little in the way of positive activity across the globe on Dollar-led pairs. The USD/CAD has threatened a 2-month low alongside a host of others. Although difficult to pinpoint an exact cause, many traders are bound to have geopolitical concerns at the forefront of their mind heading for new year.

Euro battles to a high finish

The Euro has defied the odds to approach the end of 2019 at its highest point since August. After months, even a full year of toil, the currency has prevailed with strength to close above 1.12. This marks the sixth consecutive gain from trading sessions of the currency.

This growth, while it still has no recovered the positions from 12 months ago, has surprised many forecasters in the market. They had predicted a weak ending to the year, particularly since much of the data coming from the Eurozone lately has not been great. The result here, goes a long way to showing the importance of market sentiment though, with traders clearly picking up on the positive momentum of late.

Sterling also benefits from USD weakness

Another unlikely string performer as we approach the close of the year is the British Pound. The ongoing Brexit debacle has done its best to batter the pound throughout the year. While market confidence has certainly been shaky at times, there is no doubt the ship has been steadied by the conservative victory.

This, combined today with something of a concession from European Commission President Ursula von der Leyen, that the deadline for post-Brexit trade talks may need to be extended. In the broader picture, this has helped to ease tension among investors of the UK plummeting out of the bloc with no trade deal whatsoever. These factors have ultimately contributed to a fifth consecutive session gain for the GBP.

Embattled USD forex market fights back slightly

The USD had shown weakness of late. This is mainly due to the positive news that the US-China trade deal looks a step closer to being done. While seen as generally positive in economic terms, the USD forex market has been negatively impacted by this news. That is largely due to the fact many had sought out the USD as a safe haven currency.

With a reducing need for this protection, Dollar-led forex markets have started to retract, though a small fightback was mounted today. Despite this recovery, it still looks more than likely that the USD will head in to 2020 posting some of the lowest numbers in many years. The US Dollar Index gains for the year have been just 0.6%. This is the lowest number in 6 years. Hopes will be high that 2020 can bring much more growth for the Greenback.

Anthony is a financial journalist and business advisor with several years’ experience writing for some of the most well-known sites in the Forex world. A keen trader turned industry writer, he is currently based in Shanghai with a finger on the pulse of Asia’s biggest markets.

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