Dollar Slips in Thin Trade Hours Before Trump’s Inauguration
The dollar fell against most major currencies as traders trimmed widely-favored bullish positions on the greenback just hours ahead of Donald Trump’s second inauguration as the US President.
A Bloomberg gauge of the dollar declined as much as 0.3% on Monday, as Trump’s call on Friday with China President Xi Jinping helped ease jitters over trade tensions between the two nations. Thin liquidity due to a holiday in the US likely exacerbated the greenback’s weakness against everything from Australia’s dollar to the offshore yuan.
“We are all waiting for the big event — Trump’s speech and executive orders to follow,” said Rodrigo Catril, strategist at National Australia Bank Ltd. in Sydney. “Liquidity is thin and one should treat the price action signaling with care.”
Source: Bloomberg