Dollar slips ahead of Federal Reserve's meeting minutes
The US dollar slipped on Wednesday, after President Donald Trump's remarks, and ahead of the Federal Reserve meeting minutes.
President Donald Trump unexpectedly decided yesterday to stop the stimulus talks with Democrats, until after the presidential election next November.
However, Trump calmed the market's concerns and stated that he is considering a $25 billion aid program to support to airlines and the paycheck protection program.
The US Federal Reserve will release later today the minutes of its September's meeting, which is expected to provide additional insight on the future of the US monetary policy.
The dollar index fell against a basket of currencies by 0.1% to 93.5 points as of 18:50 GMT, after hitting a high of 93.9 and a low of 93.5.
USD/JPY tilted higher in Asian trade off October 5 lows following earlier data from Japan and ahead of US data. As of 06:54 GMT, USD/JPY rose 0.06% to 105.39, with an intraday high at 105.45. Earlier Japanese data showed the M2 monet supply index up 9% in September, accelerating from 8.6%, while Bank of Japan Governor Haruhiko Kuroda said earlier the BoJ is still considering its involvement in climate change issues and their impact on business. From the US, consumer prices are expected up 0.2% in September, slowing down from 0.4%, while core prices are expected up 0.2%. On a yearly basis, consumer prices are expected up 1.4% in September, while core prices are expected up 1.8%.
The US dollar fell against its rivals on Wednesday, to hit the lowest level since early September, as the market focus on the ongoing discussions about the second Covid-19 aid package in the US. US Treasury Secretary Steven Mnuchin met yesterday with some congressional leaders to narrow their differences and discuss the possibility of securing a deal on the $1.8 trillion stimulus package. Meanwhile, investors are also focusing on the corporate earnings season, with major firms releasing their business results, led by Netflix, Snapchat and a slew of US banks. The number of Covid-19 infections surpassed 40 million confirmed cases worldwide. While one of the volunteers has died during the clinical trials for the vaccine developed by AstraZeneca and Oxford University. The dollar index fell against a basket of currencies by 0.5% to 92.6 points as of 20:17 GMT, after hitting a high of 93.07 and a low of 92.4.
The US dollar held steadily on Monday, amid lingering optimism about the second Covid-19 aid package aimed at supporting the world's largest economy. US President Trump decided last week to stop the second Covid-19 stimulus talks between Republicans and Democrats in Congress until after the presidential election in November. However, Trump stated that his administration is considering extending the aid package to support to airlines and the paycheck protection program. On Friday, Trump also proposed to the House Speaker Nancy Pelosi a $1.8 trillion fiscal stimulus package. The dollar index rose against a basket of currencies by less than 0.1% to 93.08 as of 20:03 GMT, after hitting a high of 93.2 and a low of 93.01.