Note

[BREAKING] Dollar Eases on Cautious Optimism Around U.S. Fiscal Package

Verified Official
· Views 590

[BREAKING] Dollar Eases on Cautious Optimism Around U.S. Fiscal Package

NEW YORK (Reuters) - The dollar edged lower on Monday as investors were cautiously optimistic that an agreement in Washington on a fiscal stimulus package could be reached ahead of the U.S. election happening on Nov 3, and that a coronavirus vaccine will be ready by year-end.

The dollar index declined 0.3%, giving back some of its 0.7% gain from last week when a global surge in coronavirus cases and an impasse over the stimulus package stoked caution.

"It could potentially have a coronavirus vaccine ready in the United States by the end of the year," the drugmaker Pfizer Inc said on Friday.

"The dollar index traded in a tight range of 93.207 to 93.767, and from a technical perspective, is likely to remain range-bound this week," said Marc Chandler, chief market strategist at Bannockburn Global Forex.

On the other hand, Asia’s trade-exposed currencies held firm on Monday as data showed China’s economic rebound from the pandemic accelerated in the third quarter, with the yuan surging to a fresh one-and-half-year high against the dollar.

China’s gross domestic product grew 4.9% in the period ended Sept 30, 2019, slower than analysts’ forecast, but faster than the second quarter and helped by strong gains in industrial output and a rise in retail sales.

The Chinese currency touched 6.6737 against the U.S. dollar in the offshore market, its strongest since March 2019, before easing back 0.29%. The yuan has benefited in the last few months from hopes that Democrat Joe Biden will win the presidential election, as he is seen as less of a threat to U.S.-China relations than Republican President Donald Trump.

Read more from the original article: https://www.reuters.com/articl...

Edited 20 Oct 2020, 11:02

Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.

FOLLOWME Trading Community Website: https://www.followme.com

If you like, reward to support.
avatar

Hot

No comment on record. Start new comment.