Dollar slips amid anticipation of US stimulus package

The US dollar fell against most of its peers on Friday, amid anticipation of the second fiscal aid package to ease the coronavirus impact on the US economy.

 

President Donald Trump decided last week to stop the second Covid-19 stimulus talks between his administration and Congress leaders until after the presidential election in November.

 

However, the Trump administration proposed to the Congress a $1.8 trillion fiscal stimulus package, and then President Trump informed Treasury Secretary Steven Mnuchin to raise even more.

 

The US retail sales index rose 1.9% in September, beating forecasts of 0.7%, and the first reading of the University of Michigan's consumer confidence survey rose to the highest level since March at 81.2 points.

 

The dollar index fell against a basket of currencies by 0.1% to 93.7 points as of 20:24 GMT, after it hit a high of 93.8 and a low of 93.5.


Attached Files:

Posted By laraparker : 17 October, 2020
Related Article

Euro rose in European trade for another session against dollar to two-week highs as sentiment improves on hopes for more stimulus by US government, and after President Donald Trump exited hospital after his Covid 19 treatment.    EUR/USD rose 0.2% to 1.1800, the highest since September 21, after closing up 0.5% yesterday as risk appetite improves.    The dollar index lost 0.1% on Tuesday on track for another day of losses, marking two-week lows at 93.34.    The decline comes as haven demand on the greenback slows down while hopes for US stimulus increase.    US President Donald Trump exited the Walter Reed military hospital yesterday and returned to the White House after his Covid 19 treatment.    The president's doctor cautioned he hasn't completely recovered yet, with Trump announcing plans to return to the election trail immediately.    Otherwise, Trump called on both political parties to work together to finish up the stimulus plan, days after the House passed a $2.2 trillion financial rescue bill.

The US dollar rose against a basket of currencies on Monday, to extend gains for the second straight day, due to renewed fears of a liquidity crunch, amid a sharp sell-off in most global stock markets, and ahead of an important speech by Fed Chair Jerome Powell.   The dollar index rose by 0.45% to 93.37 points, after it opened at 93.01, and hit an intraday low of 92.75.   The greenback gained more than 0.1% on Friday, and posted its third daily gain, buoyed by upbeat economic data for September.   During the past week, the dollar index lost 0.3%, its first weekly loss in 3 weeks, after the Federal Reserve renewed its pledge to hold interest rates until 2023.   The greenback shined as the best alternative investment due to growing concerns over that the global economy, after a surge in coronavirus infections in Europe and the US.   Federal Reserve Chair Jerome Powell is due speak at 14:00 GMT, about rule-making for the community reinvestment act, which is expected to deliver some insight about the future of US monetary policy.

USD/JPY tilted lower in Asian trade off September 15 following earlier Japanese data and ahead of US data today.    As of 07:11 GMT, USD/JPY fell 0.09% to 105.31, with a week high at 105.54.    Earlier Japanese data showed services prices rose 0.1%, slowing down from 1.1% in July.    From the US, durable goods orders are expected up 1.1%, slowing down from 11.4% in July, while core orders are expected up 1%.    Federal Reserve Bank of New York President John Williams will speak about the COVID-19 job market at a webinar hosted by the University of Rochester.    Chicago Fed President Charles Evans said that the US economic crisis is worse than it appears in the economic data, while other Federal Reserve's members expressed that the economy would recover from the pandemic by the end of this year.   White House Chief Health Advisor Anthony Fauci expressed that an effective vaccine is being developed, adding that the US would have the vaccine by next November or December.   At his Congressional testimony, Fed Chair Jerome Powell said over $195 billion of aid was given away to counter the Covid 19 impact.   He called on Congress to issue further stimulus to help families and small and medium companies as recession continues to haunt the economy.   US President Donald Trump has refused to commit to a peaceful transfer of power in case his opponent Joe Biden won the presidential elections in November. 


Post your comment