Dollar rallies for second straight session

The US dollar rallied against most of its counterparts on Monday, extending its gains for the second straight day thanks to safe-haven demand.

 

The dollar continues its bullish trend amid anticipation for any monetary policy moves by the US Congress, despite the recent Fed meeting ruling out any rate hikes ahead of the end of 2023.

 

Governor of the Federal Reserve Bank of Dallas Robert Kaplan said that the bank may raise interest rates if inflation reached lower levels.

 

It's noteworthy that the US Federal Reserve announced last Wednesday keeping the interest unchanged between zero and 0.25%.

 

Fed Chair Jerome Powell pledged taking all the necessary tools and measures until the economy recovers and returns to its growth path.

 

The dollar index rose against a basket of currencies by 0.7% to 93.5 points as of 20:33 GMT, after it hit a high of 93.7 and a low of 92.7.


Attached Files:

Posted By laraparker : 21 September, 2020
Related Article

Euro rose in European trade for the second day against dollar away from two month lows, as haven demand retreats on the greenback amid hopes for further financial stimulus from the US.    EUR/USD rose 0.2% to 1.1684, after closing up 0.3% yesterday away from three-month lows at 1.1612.    The dollar index fell 0.2% on Tuesday for the second session away from two-month highs at 94.75.    US House President Nancy Pelosi said the Democratic lawmakers are preparing a anew rescue bill amounting to $2.2 trillion.    That overcame ECB President Christine Lagarde's remarks that euro's value is impacting European inflation, with policymakers keeping a close eye on the forex exchange.

The Canadian dollar rose against most of its rivals on Friday, after the release of positive jobs data that beat forecasts during September.   The Canadian economy revealed today 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.    The unemployment rate fell to 9.0%, better than estimates of 9.8%, and also better than the previous reading of 10.2%.    The data indicate a gradual recovery in the Canadian economy from the coronavirus impact, despite concerns about the possibility of a second wave in a many countries.   As of 17:49 GMT, CAD/USD rose 0.6% to 0.7620, after hitting a high of 0.7625 and a low of 0.7574.

The US dollar fell on Thursday, deepening its losses for the fourth straight day, and hit a 1-week low, as demand slowed due to improved risk appetite, as hopes were renewed for a new fiscal stimulus in the US to counter the coronavirus impact, ahead of key data releases on the US manufacturing sector.   The dollar index fell 0.3% to a 1-week low of 93.53 points, after opening at 93.80, and hit an intraday high of 93.92.   The greenback lost 0.1% yesterday, its third daily loss, after the release of strong economic data in the US.   The dollar index has gained 1.8% during September, posting its first monthly gain in 5, thanks to strong demand for the US currency, and fears about the global economy after a spike in Covid-19 infections in Europe and the US.   President Donald Trump's administration has proposed a $1.5 trillion stimulus package in the House of Representatives, which comes within the ongoing talks between the two parties to find a compromise on the new Covid-19 relief package.   These developments renewed hopes were for a new fiscal stimulus in the coronavirus-battered economy that is currently suffering its worst economic crisis since the 1930s Great Depression.   Investors are anticipating key economic data releases today on the US manufacturing PMI for September, which delivers insight on the the US economic recovery path during the third quarter.   At 12:30 GMT, the US jobless claims reading is expected to reach 0.850 million in the week ending September 26, from 0.870 million in the previous week.   Investors are also waiting for the release of the US personal spending July's reading, with forecast to rise by 0.7% vs. a rise by 1.9% in July, and the personal income index is expected to drop 2% from a rise by 0.4% in July.   At 14:00 GMT, the ISM manufacturing PMI reading for September will be released, with forecasts to reach to 56.0 points in September, unchanged from August's reading.


Post your comment