- USD weakness continues.
- USDJPY back under104.00 sentiment points to further losses.
The US dollar extends losses with its sight set on lows last seen in April 2018. The tone surrounding the US Dollar has been soft for some time. However, the latest run lower is owing to the upbeat mood in the market after the US FDA approved the Pfizer vaccine. The inoculation programs will begin today.
Increased optimism surrounding a USD908 billion relief package is also propping up sentiment as both sides appear to be heading towards agreement. .
The Fed are unlikely to make any changes to policy at this week’s FOMC. Although the central bank could carry on talking the US dollar lower.
There are no areas of horizontal support on the daily US Dollar Index chart. A low from February 2018 at 87.90 is the next level of potential support.