XE Market Analysis: Asia – Dec 17, 2020

The Dollar fell to new trend lows on Thursday in N.Y., taking the DXY to 89.76, the first time under the 90.00 mark since April of 2018. Prospects for another fiscal stimulus package, along with a “lower for longer” Fed, and negative real U.S. interest rates will likely continue to result in further USD losses as we look to 2021. As vaccines are distributed globally, and economies re-open, investment opportunities are likely to dent Dollar demand as well. Incoming U.S. data on Thursday was mixed, seeing initial jobless claims higher than forecast, though continuing claims lower.