The ending of 2020 is witnessing a weak USD at the brink of New Year celebrations. Traders are not that much relaxed in terms of the trade of USD. This weak state of USD is ultimately proving profitable for its counter-currencies such as EUR, GBP and AUD. That’s the game of Forex trading. The fall of a currency ensures the rise of the other. It seems the Central Banks are likely to add liquidity in the system. The positivity regarding the vaccine of the terrifying pandemic seems good news for the world. But at the same time, this positivity has created disappointment among the USD traders. Obviously such a state has forced the traders to divert their attention from their favorite safe- haven USD towards its counter-currencies.
Weak USD against GBP:
GBP/USD has recently been enjoying a smooth trail of gains. Now United Kingdom has already approved the vaccine of Oxford University against the Pandemic. The optimism of the entire world against virus is negatively affecting USD. This predicts that GBP/USD will move back towards the recently achieved (17-12-20) high level and that is above 1.3620, another scenario. Now there is an extreme selling pressure on USD. USD has observed a significant change in its trading state. In case of GBP/USD, this change has resulted in such a situation that this pair has gained 48 pips. The current weak USD is not just supporting its counter-currencies but it is also supporting the price Crude Oil.
AUD/USD has increased 32 pips yesterday. Obviously it is a prominent and appealing difference. This scenario is no doubt a smooth trail for AUD but a rocky path for USD. The changing market sentiments are against safe-haven. Here the question arises if USD will be able to enhance and double the New Year celebration of its traders.