U.S. Dollar Spikes Up As Risk Sentiment Sours

The U.S. dollar climbed against its major counterparts in the European session on Monday, as weak German data along with rising coronavirus cases raised concerns about the global economy.

Survey results from the ifo institute showed that German business confidence weakened in January.

The business confidence index fell to 90.1 in January from revised 92.2 in the previous month. The score was forecast to drop moderately to 91.8.

The coronavirus cases exceeded 99 million worldwide and the death toll climbed above 2 million, according to data compiled by Johns Hopkins University.

The French government may impose a third lockdown in the coming days to combat coronavirus in the country. The government is planning to meet on Wednesday to decide whether further measures are required.

U.S. President Biden will reimpose a ban on non-U.S. citizens from the United Kingdom, Ireland, and 26 countries in Europe attempt to enter the country. The order will also prohibit travelers from Brazil and South Africa, where new virus variants have been detected.

The greenback appreciated to 4-day peaks of 0.8877 against the franc and 1.2140 against the euro, up from its prior lows of 0.8846 and 1.2183, respectively. The next possible resistance for the greenback is seen around 0.90 against the franc and 1.17 against the euro.

The greenback reversed from an early low of 1.3724 against the pound and moved up to 1.3666. If the dollar climbs further, 1.34 is likely seen as its next resistance level.

The U.S. currency bounced off from its earlier lows of 1.2687 against the loonie and 0.7747 against the aussie and was worth 1.2718 and 0.7718, respectively. The greenback is seen finding resistance around 1.29 against the loonie and 0.75 against the aussie.

After a fall to 103.67 at 2:00 am ET, the greenback rose back to 103.85 against the yen. On the upside, 108.00 is likely seen as its next resistance level.

On the other hand, the greenback held steady against the kiwi, after having dropped to 0.7217 at 1:45 am ET. The pair finished Friday's trading at 0.7175.