Dollar index lacks momentum in thin holiday trade; slips below 106 mark for first time in 2-weeks

The dollar index slipped to a two week low below 106 mark on Friday giving up its recent streak of gains near two year high that was triggered by Trumps victory in the US Presidential elections. Currently, the dollar index futures that measures the greenback against a basket of currencies is trading at 105.85, down 0.19% on the day in subdued trading conditions during the Thanksgiving holiday. Meanwhile, broad gains in the Japanese yen, currently around one month high above 150 per dollar is seen weighing down the greenback. Data released on Friday showed that consumer prices in Tokyo, accelerated for the first time in three months, lifting bets for another interest rate hike by the Bank of Japan (BoJ). Strength in basket currencies is also adding pressure on the dollar index. GBPUSD is quoting higher by 0.31% at $1.2711, a two-week high amid reduced bets for another interest rate cut by the Bank of England (BoE) this year after data released last week showed that the underlying price growth in the UK gathered speed in October.

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