Investing.com investing.com 19 Dec, 2020 03:30 am

U.S. Dollar Bounces As Market Waits For Stimulus Deal

U.S. Dollar Bounces As Market Waits For Stimulus Deal
Forex Analysis by Kathy Lien covering: EUR/USD, GBP/USD, USD/CAD, US Dollar Index. Read Kathy Lien's latest article on Investing.com

Stronger UK retail sales may be the only reason why sterling did not see a bigger decline on Friday.Retail sales in Canada was mixed, with spending rising 0.USD/CAD started to trend higher on Thursday evening but it catapulted upwards after retail sales.Vaccine progress and the prospect of a stimulus deal are some of the main reasons for the dollar’s weakness, and that is not expected to change.

Short covering after a strong move this year is one of the few reasons why the dollar could extend its recovery in the coming days.With that said, the primary driver of dollar flows will be year-end position adjustments, stimulus and vaccine news.

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