XE Market Analysis: Europe – Dec 17, 2020

The dollar posted fresh trend lows as the ‘2021 reflation trade’ ensued. The MSCI Asia-Pacific index hit a new record high, as did S&P 500 futures. Commodities gained, with Brent oil prices posting new nine-month highs above $51.00, while base metals rallied, although prices remained off recent trend highs. Against this backdrop, the DXY dollar index slipped below the 90.00 level for the first time since April 2018, posting a low at 89.89. EUR-USD concurrently printed a 32-month peak at 1.2244. The Australian and New Zealand dollar also hit new major-trend highs.