- NZD/USD is rising modestly in quiet trading day.
- US Dollar Index is edging lower toward 90.00.
- Brexit-related headlines could impact USD’s market valuation on Christmas Eve.
The NZD/USD pair gained 50 pips on Wednesday as the upbeat market mood made it difficult for the greenback to find demand. On Thursday, the pair is posting small daily gains at 0.7115 as the selling pressure surrounding the USD remains intact.
Eyes on EU-UK trade deal
Despite a lack of significant fundamental drivers, expectations for the EU and the UK to reach a trade deal help the GBP/USD pair surge higher and weigh on the USD. The US Dollar Index (DXY) is currently down 0.22% on the day at 90.21.
The latest headlines surrounding Brexit developments suggest that sides are working on the last minute details and an official announcement will arrive on Thursday. Markets seem to have already priced in a deal and a “buy the rumour sell the fact” reaction could help the DXY stage a rebound. Nevertheless, a potential increase in market volatility is likely to remain short-lived on Christmas Eve.
Meanwhile, major equity indexes in the US will close early on Thursday and financial markets are expected to remain quiet until next week.
Technical levels to watch for
Share
