Dollar starts new year with a hangover as others find cheer

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Dollar starts new year with a hangover as others find cheer
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The dollar started the new year where it left the old one, under pressure as inv...

SYDNEY - The dollar started the new year where it left the old one, under pressure as investors wagered U.S. economic outperformance could be coming to an end as optimism on trade brightens the outlook for growth globally.

The euro edged up to $1.1220, after gaining 1.8% in December to reach its highest since early August. It now looks set to challenge that August peak at $1.1249. “Specifically, global fiscal/monetary policy settings will remain accommodative in 2020 and China’s growth slowdown is stabilising.” While activity was light on Thursday, traders were on watch for any repeat of last January’s “flash crash” when massive stop-loss selling swept through an illiquid holiday-hit market.

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