Home Forex News Stimulus Hopes Press Dollar To One-Week Low

Stimulus Hopes Press Dollar To One-Week Low

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  • UK says no to more EU trade talks
  • BOJ to cut growth, inflation forecasts as pandemic pain persists

The dollar was pinned near a one-week low on Wednesday as investors optimistic about the prospects for a pre-election U.S. stimulus package sought riskier currencies. The White House and Democrats have moved closer to agreement on a new corona virus relief package as President Donald Trump said he was willing to accept a large aid bill despite opposition from his own Republican Party. That pushed the dollar index down 0.4% to a one-week low of 92.991. It sat just above that level in Asia trade. Stimulus is seen as a short-term weight on the dollar because the spending would support the U.S. economy and improves market sentiment, driving investors into riskier assets.

The euro led gains to hit a one-month high of $1.1841 and held at $1.1828 in Asia. U.S. bonds were sold and the safe-haven yen was also on the back foot, though it recovered from a one-week low to sit at 105.49 per dollar on Wednesday.

Britain’s chief Brexit negotiator David Frost said there was no basis to resume trade talks with the European Union unless there was a fundamental change in Brussels’ approach.

Time                                      :           21/10/2020

Pivot                                     :           1.1818

Technical View                     :           LONG ABOVE 1.1838

Target                                   :           1.1858, 1.1891, 1.1911, 1.1969

Technical View                      :           SHORT BELOW 1.1798

Target                                   :           1.1778, 1.1725, 1.1695, 1.1671

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