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BREAKING: Dollar Pares Intra-Day Loss due to Weakness in U.S Stocks

Verified Official
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The greenback ended the day largely flat against majority of its peers on Friday on return of risk sentiment, due to Covid-19 vaccine optimism. U.S. lawmakers agreed late on Thursday, to revive discussions on the coronavirus aid package. The Dow closed down 219 points or -0.75% at 29,263.  
  
CNBC reported that the U.S. Senate Democratic leader Chuck Schumer informed that the  Republican Majority Leader Mitch McConnell had agreed to resume COVID-19 relief talks as cases surge across the country.  

Reuters reported Dallas Federal Reserve Bank President Robert Kaplan on Friday called again for more fiscal support for the U.S. economy, particularly for state and local governments struggling with budget holes, and for the millions of unemployed who are spending down savings from prior aid. "If the savings do run out you are going to see consumer spending get weaker," Kaplan said at an energy conference held online by the Dallas and Kansas City Fed banks. "This hasn't felt as much like a recession for a lot of businesses - it will start to, if you don't have some renewal in some form of the fiscal relief."  
  
Versus the Japanese yen, dollar retreated to 103.73 in Australia before rebounding to 103.90 in Asian morning. The pair then weakened to 103.75 ahead of European open and traded sideways before falling to session lows of 103.71 in New York morning. The price last traded at 103.85 near the close.  
  
The single currency retreated to 1.1866 ahead of Asian open before rising to an intra-day high at 1.1890 in Asia on USD's weakness, only to drop to 1.1852 in European morning due partly to cross-selling of euro especially vs sterling. The pair then staged a rebound to 1.1878 ahead of New York open and then hit session lows of 1.1851 in New York as weakness in U.S. stocks in New York afternoon triggered safe-haven usd buying.  
  
The British pound traded in choppy fashion. The price dropped to 1.3246 in Australia before climbing to 1.3287 at European open on the back of upbeat U.K. retail sales data. Despite retreating to 1.3250 in the early European morning due to a Bloomberg report that main hurdles in Brexit talks remained unsolved, the price ratcheted higher to 1.3292 in Europe. It hit session highs of 1.3297 in the New York morning on cross-buying of sterling especially versus euro due to renewed Brexit optimism. Price last traded at 1.3282 near the close.  
  
Reuters reported the E.U. and Britain are very close to agreement on most issues as time runs out for a trade deal. But they are still at odds over fishing rights, guarantees of fair competition and ways to solve future disputes, an EU official told ambassadors in Brussels.    "We are both close and far away. It seems that we are very close to agreement on most issues but differences on the three contentious issues persist," a senior European Union diplomat said after ambassadors were briefed on Friday by an E.U. negotiator.  
  

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