The dollar inched up in early Monday trade as riskier currencies slipped after negotiation on a U.S. stimulus package ran into resistance and as the yuan dropped after China’s central bank took a measure seen as aimed at curbing its strength. President Donald Trump on Friday offered a $1.8 trillion corona virus relief package in talks with House Speaker Nancy Pelosi – moving closer to Pelosi’s $2.2 trillion proposal. But Trump’s offer drew criticism from several Senate Republicans, many of whom are uneasy about the nation’s growing debt and concerned a deal would cost Republicans support in the upcoming presidential election, denting the risk-on mood.
The offshore Chinese yuan dropped after the People’s Bank of China (PBOC) said it will lower the reserve requirement ratio for financial institutions when conducting some foreign exchange forwards trading. The yuan hit a 17-month high on Friday, both in onshore and offshore trade, having gained more than 6% against the dollar since late May largely driven by a favourable yield differential between China and other major economies.
TREND : WEAK BULLISH
Time : 12/10/2020
Pivot : 1.1799
Technical View : LONG ABOVE 1.1826
Target : 1.1854, 1.1881, 1.1933
Technical View : SHORT BELOW 1.1785
Target : 1.1771, 1.1721, 1.1692