The Dollar was trading with an upward bias on the Thanksgiving holiday Thursday but is set to advance further upon low-yielding rivals over the coming weeks, according to technical analysis from Swiss private bank Julius Baer, with the negative interest rate currencies right in the greenback's firing line.
The Pound-Dollar rate retreated from an intraday high as the greenback built on already-broad gains Wednesday after Bureau of Ecomic Analysis (BEA) revealed the U.S. economy actually gathered steam in the third-quarter, contrary to popular belief, although there could be more downside ahead for the British currency.
The Dollar was higher against most rivals Wednesday as investors responded to fresh claims that a U.S.-China trade deal is near, although an economic data deluge will hit the market in the noon hours, potentially weakening the greenback.
The Pound was scraping along the bottom of the major currency barrel on Tuesday although it further losses could be just around the corner, according to some analysts, because momentum is shifting to the downside on the charts just as election opinion polls are turning from tailwind into a headwind.
Investment bank Goldman Sachs say they are forecasting a modestly weaker Dollar in 2020, while analysts at HSBC - the UK's largest lender - say the Dollar is likely to remain the currency to own for the foreseeable future.
The Pound-to-Dollar rate retains an upside bias on the charts and could still reclaim its May 2019 high in the weeks ahead, according to technical analysts at Commerzbank, although a narrowing Conservative Party lead in the opinion polls is a risk to the British currency.
The Pound-Dollar rate retreated further from a five-month high Friday as uncertainty over the December general election and a resilient greenback weighed on the exchange rate, which is tipped by many to remain on its back foot in the weeks ahead.