U.S. Dollar Strengthens On Stimulus Deadlock
October 12 2020 - 5:20AM
RTTF2
The U.S. dollar firmed against its most major counterparts in
the European session on Monday, as U.S. stimulus talks remained
deadlocked after Democrats' had rejected Republicans' $1.8 trillion
coronavirus relief bill proposal.
While Republicans blamed it for being too large, Democrats said
that the funding was not sufficient.
House Speaker Nancy Pelosi said that the proposal lacked a
strategic plan to contain the spread of the outbreak, and has
inadequate aid for state and local governments as well as financial
relief for American families.
It is unclear whether Congress will have time to introduce a
pandemic relief bill and pass it through the Republican-held Senate
before the election.
This week's economic docket features consumer inflation on
Tuesday, followed by producer prices on Wednesday. The attention
will then shift to weekly jobless claims on Thursday and retail
Sales and the consumer sentiment index on Friday.
The dollar edged up to 0.9124 against the franc and held steady
thereafter. The pair had ended Friday's trading at 0.9092.
The greenback rose to 1.1787 against the euro and 1.3005 against
the pound, from its previous low of 1.1827 and near a 5-week low of
1.3060, respectively. If the greenback continues its rise, 1.16 and
1.29 are possibly seen as its next resistance levels against the
euro and the pound, respectively.
Reversing from its early lows of 0.7235 against the aussie and
0.6671 against the kiwi, the greenback rebounded to 0.7205 and
0.6645, respectively. The dollar may find resistance around 0.70
against the aussie and 0.645 against the kiwi.
In contrast, the greenback fell to a weekly low of 105.36
against the yen from Friday's closing value of 105.59. On the
downside, 100 is possibly seen as its next support level.
Data from the Bank of Japan showed that Japan producer prices
fell 0.2 percent on month in September - missing expectations for a
flat reading following the downwardly revised 0.1 percent increase
in August.
On a yearly basis, producer prices sank 0.8 percent - again shy
of expectations for a loss of 0.5 percent, which would have been
unchanged from the August reading.
The greenback remained weaker against the loonie and was trading
at 1.3123. The greenback is seen locating support around the 1.29
level.
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Apr 2024 to May 2024
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From May 2023 to May 2024