Tags: dollar | buying | spree

Dollar Nears a Critical Level That May Trigger A  Buying Spree

Dollar Nears a Critical Level That May Trigger A  Buying Spree
(Dreamstime/Dmytro Iatsenko)

Thursday, 20 February 2020 08:52 AM

The dollar is heading toward a key psychological threshold that could supercharge its ongoing rally.

The U.S. Dollar Index, a widely-watched measure of the currency versus its peers, is close to breaching 100 for the first time since 2017, as the currency proves a haven of choice for investors confronting risks from the spread of the coronavirus.

“I would say the 100 level is a big deal,” said Neil Jones, head of foreign-exchange sales to financial institutions at Mizuho Bank Ltd. “A number of buy signals will kick into play, it will set the alarm bells off.”

The greenback has easily outperformed all of its major peers this year, confounding expectations that it would weaken following the U.S.-China trade deal. The coronavirus has boosted fears of a global economic slowdown, with South Korea reporting its first fatality and Japan confirming two deaths from a quarantined cruise ship.

Other haven assets also rallied Thursday, including U.S. Treasuries and the Swiss franc, with gold prices touching the highest since 2013. The euro and the yen, forming the bulk of the dollar index gauge, have both slid more than 3% this year.

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The dollar is heading toward a key psychological threshold that could supercharge its ongoing rally.
dollar, buying, spree
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2020-52-20
Thursday, 20 February 2020 08:52 AM
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