The recent development of the trading trend of the US dollar (USD) exchange rate on the foreign exchange (Forex) market showed a strengthening of its exchange value at the very beginning of 2021. However on the 12 January 2021, according to the US Dollar Currency Index (DXY) the exchange value of the USD weakened. On 13 January at 7:54 am CET, the USD was seen at the price level of 90.00, with a daily decrease of -0.11% so far.
The value of the USD and its previous value from the beginning of 2021 – expressed by the DXY which compares the exchange value of USD with six other major world currencies – reached, according to economic reporters, a two-year low. This fact was reflected particularly in commodity market prices where the USD is the main commodity currency, which respond to changes in the exchange rate of the USD, namely gold and oil prices. On 13 January at 8:11 am CET, investment gold was traded on the Commodities Exchange (COMEX) commodity market at a value of US$ 1,857.70 per troy ounce, with a daily appreciation of +0.732%.
At the same time the oil commodity also recorded its continued rise in price, which apart from the current decline in the USD exchange rate, was backed up by Saudi Arabia’s promise to further reduce crude oil production in the early part of 2021. The price of light American oil West Texas Intermediate (WTI) reached the value of US$ 53.71 per barrel within the trades on the New York Mercantile Exchange (NYMEX) commodity market with the current daily gain of +0.94%. However, according to analysts, today’s price of WTI oil still represents a price drop of -1.45% since the beginning of 2021. The European counterpart of the WTI oil, namely Brent North Sea oil, has also strengthened and was trading at US$ 57.14 per barrel, with a daily appreciation of +0.99% on the Intercontinental Exchange Europe (ICE).
According to financial market strategists, investors are currently waiting for the Forex market to react to the upcoming wave of US government spending, this time under the administration of the President-Elect Joe Biden, who will take over the office on 20 January 2021. Previously at the end of the administration of incumbent President Donald Trump, the financial market saw an increase in US government bond yields, which analysts said helped keep the current USD exchange rate above 90 points in the early second week of 2021. However, in the short run, the current USD exchange rate is lower and this is reflected on the Forex market. On 13 November at 8:31 am CET the global currency pair traded at a mutual exchange rate of US$ 1,222 per EUR with the current daily strengthening of the EUR by +0.10% of the exchange rate against the USD.