Dollar Sinks as Traders Take Profit

The US dollar dropped against other most-traded currencies today as traders were taking profits at the start of the new month that followed November, which was a very good month for the US currency.

The US dollar has started a rally in the first half of November, and the currency accelerated its move to the upside after November 9 when Donald Trump won the presidential race. Now, traders are locking in profits following the impressive rally. It is not surprising to see the currency to take a breather after the long and big move in one direction. It is important to note that the currency did not experience a real correction after the rally and simply entered a consolidation period, seeking to establish a new trend.

Perhaps, tomorrow’s non-farm payrolls will help the greenback in that endeavor. The employment data will be the last big report ahead of the Federal Reserve policy meeting on December 14–15. It may influence the Fed’s decision to hike interest rates, therefore traders will take the data account when they will be guessing whether the Fed is going to hike rates or not.

EUR/USD rallied from 1.0588 to 1.0658 as of 21:20 GMT today. GBP/USD was up from 1.2505 to 1.2590, though the currency pair has retreated from the daily high of 1.2695 which was the highest since October 6. USD/CHF tanked from 1.0171 to 1.0107.

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