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Dollar (DXY) outperforms, euro (EUR) weaker on lockdown fears

By Piero Cingari

10:09, 22 November 2021

US dollar and euro banknotes
The British pound is broadly against major peers – Photo: Shutterstock

The US dollar (DXY) edged up on Monday, hovering around its year-to-date highs as more Fed members signalled hawkish tones and greater openness to a tightening of monetary conditions next year.

The euro (EUR) continues to remain under pressure amid European Central Bank’s president Christine Lagarde’s dovish comments and fears of further restrictions to curb Covid outbreaks in Europe, with Austria imposing a full lockdown starting today.

The British pound is broadly unchanged against major peers, while it retraced against risk-sensitive currencies such as the NZD and the AUD. The cable (GBP/USD) traded at 1.3433 (-0.1%).

The Japanese yen (JPY) is lower in the European morning, after strongly rebounding on Friday due to a risk-averse mood in the market. 

The Australian dollar (AUD) is outperforming all other major currencies, gaining 0.3% against the US dollar (USD) and 0.5% against the Japanese yen. 

The Russian ruble (RUB) is among the worst performers of the day, sliding 1% against the greenback, after US intelligence reported a build-up of Russian troops on the Ukrainian border and despite Moscow denying any intentions to invade.

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Forex Daily Matrix – 22 November 2021

A forex table that compares nine major currencies against each other, including USD, EUR, GBY, JPY, CHF, AUD, NZD, CAD and NOKForex daily matrix as of 22 November 2021, 10:00 GMT – Credit:

US dollar

The US Dollar Index was last at 96.06, hovering around its year-to-date highs and up 0.1% from previous close.

Rising expectations of monetary tightening after October’s US inflation data, as well as worsening risk sentiment due to the Covid-19 resurgence in Europe, have been the main factors behind the recent strengthening of the US dollar.

Recently, more Fed members have hinted at a hawkish turn. Last Friday, the Fed’s Christopher Waller said that he is now “favouring a faster pace of tapering and a more rapid removal of accommodation in 2022”, while vice chair Richard Clarida opened the door for a policy discussion on a faster pace of tapering.

The market will be looking for Biden’s nomination for Federal Reserve chair this week, which is due around Thanksgiving.

The odds of Jerome Powell being re-elected rose to 70% last week, while those of Lael Brainard fell to 30%, according to online prediction markets.

On the data front, tomorrow the Markit Purchasing Managers’ Index (PMI) flash for November will be released. In addition, Wednesday will be a day full of macroeconomic events, with the release of durable goods orders, jobless claims, preliminary GDP data for the third quarter, October’s PCE and the publication of the FOMC (Federal Open Market Committee) minutes of its November meeting.


1.26 Price
-0.380% 1D Chg, %
Long position overnight fee -0.0046%
Short position overnight fee -0.0036%
Overnight fee time 22:00 (UTC)
Spread 0.00130


0.66 Price
-0.390% 1D Chg, %
Long position overnight fee -0.0072%
Short position overnight fee -0.0011%
Overnight fee time 22:00 (UTC)
Spread 0.00050


0.66 Price
-0.390% 1D Chg, %
Long position overnight fee -0.0072%
Short position overnight fee -0.0011%
Overnight fee time 22:00 (UTC)
Spread 0.00050


145.00 Price
+0.560% 1D Chg, %
Long position overnight fee 0.0113%
Short position overnight fee -0.0195%
Overnight fee time 22:00 (UTC)
Spread 0.090

US dollar technical levels:

  • 52-week high: 96.18
  • 52-week low: 89.212
  • 50-day moving average: 95.80
  • 200-day moving average: 95.20
  • 14-day Relative Strength Index (RSI): 53.48


The euro traded at 1.1287 against the US dollar, unchanged from its previous close.

On Friday, the single currency depreciated 0.8% amid the accommodative tones expressed by Christine Lagarde and fears of new government restrictions to curb the wave of Covid-19 in Europe.

Austria has announced a full national lockdown of 20 days from today, while the German Health Minister hasn’t excluded this option and some länders (states) cancelled the popular Christmas markets as cases are rising worryingly.

Several anti-lockdown protests occurred in the Netherlands, Austria and Belgium over the weekend, with clashes between demonstrators and the police.

EUR/USD technical levels:

  • 52-week high: 1.2349
  • 52-week low: 1.1248
  • 50-day moving average: 1.1595
  • 200-day moving average: 1.1858
  • 14-day Relative Strength Index (RSI): 28.70

Chart of the day: Europe is in the midst of a fourth Covid-19 wave

A chart showing the evolution of Covid-19 new cases in some European countries: Germany, Netherlands, Austria, Belgium, France, Spain and EU average7-day rolling average of daily new confirmed Covid-19 cases (per 1m) – Credit:

British pound

The cable (GBP/USD) was last at 1.3426 at 10:00 GMT, down 0.1% from previous close.

GBP recovered last week on stronger than expected UK retail sales in October and consumer confidence in November, which reignited market expectations for a Bank of England rate hike in December.

On the data front, November’s PMI flashes will be published tomorrow. The concensus expects the Services PMI to decline from 59.1 to 58.5.

GBP/USD technical levels:

  • 52-week high: 1.4248
  • 52-week low: 1.3133
  • 50-day moving average: 1.3630
  • 200-day moving average: 1.3833
  • 14-day Relative Strength Index (RSI): 39.93

Forex Performance Heatmap – 22 November 2021

A forex table showing the performance of US dollar and the euro against other currenciesForex performance heatmap as of 22 November 2021, 10:30 GMT – Credit:

Other currency pairs (% change from previous close):

Read more: GBP/AUD forecast: Time for consolidation

Markets in this article

95.368 USD
0.178 +0.190%
0.65808 USD
-0.00255 -0.390%
11.75614 USD
0.00246 +0.020%
4.34052 USD
0.00029 +0.010%
11.27821 USD
0.052 +0.460%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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