The greenback continues to slip in year-end trading
The moves are pretty decent as the dollar is losing ground particularly against the euro and pound in the European morning today. Cable is keeping back above the 1.30 handle as EUR/USD stretches gains back above the 1.11 handle as well.
Apart from flow-trading dictating the theme over the past two days, there isn't much else to go on as other markets are generally keeping steady. Surprisingly, gold isn't capitalising on the dollar weakness today but price is keeping above $1,500 and that's important.
I reckon we'll be seeing this theme creep up more and more next year as traders and investors debate about the dollar's standing against the backdrop of a possibly improving/stabilising global economy.
That will present a bit of a shift in hot money flows towards emerging markets and risk currencies potentially and away from the dollar instead.
Also, with the trade war put on ice for now, that may allow investors to feel more confident about taking up more structured positions in those sort of trades.
For now, the pound is the best performer on the day with cable rising comfortably above the 1.30 handle and is looking towards 1.31 next.
