Dollar deepens losses, hits 1-week low
The US dollar fell against most of its peers on Tuesday, and hit a 1-week low, as investors await the latest developments about the second Covid-19 stimulus package in the US.
US Treasury Secretary Steven Mnuchin will meet with several Congress members both Republicans and Democrats to pave the way for an agreement on the second fiscal aid package.
The Trump Administration has proposed more than $1.8 trillion within the second Covid-19 package to pass it in Congress to support the US economy.
Data showed today that the US housing starts index rose by 1.9% to 1.415 million units during September.
The dollar index fell against a basket of currencies by 0.4% to 93.09 points as of 20:29 GMT, after it hit a high of 93.5 and a low of 93.1.
The Japanese slipped against most major currencies on Thursday, despite a drop in the US dollar and weak Japanese data. Japan's manufacturing PMI rose to 47.7 points in September, better than forecasts of holding unchanged at 47.3 points. While Tankan manufacturing index fell to -27 points, and the non-manufacturing index fell to -12 points. Otherwise, Japan alongside other countries are trying to curb the spread of the coronavirus, which has severely impacted the global economy. As of 21:58 GMT, USD/JPY rose 0.1% to 105.5, after hitting a day high of 105.7, and a low of 105.3.
USD/JPY tilted higher in Asian trade off September 21 lows, following earlier data from Japan and ahead of US data today. As of 07:59 GMT, USD/JPY rose 0.13% to 104.69, with an intraday high at 104.77. Earlier Japanese data showed the manufacturing PMI up to 48.7 from 47.7, besting estimates of 48. From the US, manufacturing PMI is expected up to 53.3 from 53.2 in September, while construction spending is expected up 1%. Markets are closely following the results of US Presidential elections tomorrow. Fears remain over the current second wave of the coronavirus and economic shutdowns that follow, with total global cases now rising to 45.94 million, and the death toll at 1.192 million.
At 12:30 GMT, the Canadian economy revealed the employment change reading for September at 378,200 new jobs, better than estimates of 150,000, and also better than the previous reading of 245,800 jobs. This data is positive for the Canadian dollar.