The US dollar is staging a rally to kick off the trading week, buoyed by investors pouring into the traditional safe-haven asset as global financial markets plummeted. Despite the US government agreeing to a nearly $1 trillion coronavirus stimulus and relief package, traders were more focused on news of a new COVID-19 strain that is starting to shut down Great Britain and other parts of Europe.
Is the US dollar in store for a rally in the coming days amid a potential selloff in the broader financial markets? With news that several of the US central bank’s emergency lending programs will be allowed to expire at the end of the year, equities could come under pressure, which would possibly benefit the traditional safe-haven asset.
The US dollar erased its gains on Tuesday and deepened into negative territory after House Speaker Nancy Pelosi revealed that a coronavirus stimulus and relief package could be done by the day’s end. This sent stocks and other asset classes rallying as investors were confident that the White House and the Democratic leadership could reach an agreement over a $2 trillion bill.
The US dollar is trading mixed against several currency counterparts midweek as investors focus more on economic data and fiscal stimulus instead of the first 2020 presidential debate between President Donald Trump and former Vice President Joe Biden. With growing confidence in the broader financial market, the greenback could face pressure in October, but electoral uncertainty might cap its decline.
The Chinese yuan is enjoying another session of modest gains to start the trading week, with much of the strength coming at the expense of the US dollar. The yuan’s ascent on Monday is being driven primarily on the central bank injecting more liquidity into the financial system. Could the yuan test 6.8 next? The currency’s performance may hinge on US-China trade talks as it will be quiet on the data front this week.
The US dollar is struggling to hold onto its best level in one week as higher producer prices and falling business optimism affected the greenback. After a near 7% slide in three months, the greenback has been holding steady so far this month amid uncertainty in the post-coronavirus global economy. But is the dollar oversold, or could inflation threaten its strength in international forex markets?
The Chinese yuan is strengthening to kick off the trading week as the central bank vowed to adopt a more targeted and appropriate monetary policy in the post-coronavirus economy. With Beijing ostensibly winding down its ultra-aggressive stimulus and relief efforts on the monetary side, investors will be watching to see if Chinese investments will remain on an upward trajectory. The yuan is also testing 6.9 against the US dollar on the latest inflation data.
The US dollar is trading flat against its G10 currency rivals on Thursday after the US government reported that initial jobless claims rose for the first time since the start of the coronavirus pandemic. Does this mean the job situation is beginning to deteriorate? Or is this a blip on the radar? Financial markets are hardly reacting to the news in pre-market trading as the leading stock indexes are also relatively unchanged.
The US dollar is weakening against some of its G10 currency counterparts on Tuesday as the federal government announced that it would borrow $3 trillion in the second quarter. The US government has been going on a spending spree to contain the coronavirus pandemic’s economic fallout, making Washington poised for a $3.8 trillion deficit for the fiscal year 2020. The greenback is also getting a hit on disappointing economic data that continues to highlight the outbreak’s […]
The US dollar is slumping on Tuesday as the Federal Reserve announced an emergency cut to interest rates. With financial markets tanking and plenty of economic uncertainty surrounding the coronavirus, the central bank cut its benchmark rate by 50 basis points. Stocks fell after an initial bump, but the greenback was largely unaffected by the announcement.
