Euro climbs for third straight day on US stimulus hopes
Euro rose in European trade on Tuesday for the third session against dollar on hopes for US stimulus before the presidential elections in November.
EUR/USD rose 0.2% to 1.1793, after closing up 0.4% yesterday away from two-week lows at 1.1688.
The dollar index fell 0.2% on Tuesday for the third straight session against a basket of major rivals.
The decline came as haven demand slows on the greenback with sentiment improving and hopes renewed for US stimulus in upcoming days.
House President Nancy Pelosi and Treasury Secretary continue to narrow the disagreements on the stimulus plan.
Pelosi said by Tuesday, it should be clear whether a stimulus plan could be passed before the November elections.
At 12:30 GMT, the Canadian economy released its reading for the retail sales index, which fell by 0.4% in August, worse than forecasts of 1%, while the index rose by 0.6% in July. This data is considered negative for the Canadian dollar.
USD/JPY tilted lower in Asian trade off October 20 highs ahead of US data today and amid a lack thereof from Japan. As of 06:58 GMT, USD/JPY fell 0.13% to 104.38, with an intraday low at 104.35. From the US, house prices are expected up 0.8% in September, slowing down from 1.5%. US Richmond manufacturing index is expected down to 20 from 29, while the consumer confidence index is expected down as well to 97.7 from 100.9. The General Services Administration in the US just announced Joe Biden's win in the 2020 presidential elections, succeeding Trump as the 46th president of the US. Biden intends to choose former Fed Chair Janet Yellen as his Treasury Secretary, becoming the first woman to do this role. The World Health Organization has so far reported 58.43 million global cases of Covid 19 with the death toll at 1.385 million.
The US dollar fell against most majors on Thursday, despite the release of better-than-expected data. The US unemployment claims fell 48,000 to 709,000 during the past week, beating forecasts of 730,000. The monthly consumer price index reading stabilized during October, alongside its core reading, missing forecasts of a rise. The number of coronavirus infections rose globally to more than 52 million cases, with a death toll of 1 million and 200 thousand victims. Global markets drew support this week after Pfizer and the German firm BioNTech announced that their vaccine was more than 90% effective in preventing the coronavirus. The dollar index fell against a basket of major currencies by 0.1% to 92.9 points as of 19:28 GMT, after hitting a high of 93.1 points and a low of 92.7 points.