XE Market Analysis: Europe – Dec 03, 2020

The DXY dollar index posted a fresh 32-month year low at 90.93. The index is amid its third consecutive down week, and the dollar has declined in four of the last five weeks. Global asset markets have come off the boil, and many market narratives are talking about the good news on Covid vaccines and the clearing political picture in the U.S. having been “priced in.” December has a reputation for being a down month (although not so much in recent years), while the most recent BoA global fund managers’ survey found that cash holdings at fund managers are now down to pre-pandemic levels.