The U.S. Dollar eased back during the opening trading session in Asia after last Friday’s gains when the greenback was pushed to a record peak against many of its major rivals. The U.S. Dollar Index, which is used by FX traders to assess the greenback’s value relative to those rivals posted its 10th consecutive weekly gain as a result, the longest streak in more than 40 years, Analysts believe that the U.S. Dollar is likely to take a breather as Dollar bulls sit back and await some upcoming fundamental events which could impact it, including an appearance of the ECB chief Mario Draghi at the European Parliament and the release of the Eurozone’s PMI results tomorrow; several members of the FOMC are also due to speak later this week.
As reported at 8:01 a.m. (BDT) in London, the EUR/USD was trading at $1.2860, gaining about 0.2% after recently striking a 14-month low at $1.2826. The U.S. Dollar Index dipped from a 2-year peak at 84.797 .DXY and was earlier trading at 84.611 .DXY, a loss of nearly 0.15%.
Relief Rally Pushes Pound Sterling Higher
In the United Kingdom, with a no vote to Scottish independence, FX investors’ relief rally sent the Pound Sterling to $1.6348 against the US. Dollar, a gain of nearly 0.4%; all last week, ahead of the historic vote, the Pound Sterling had been under significant downward pressure.