Dollar Takes a Breather After Job Data as US Stimulus Saga Continues
Login

Dollar Takes a Breather After Job Data as US Stimulus Saga Continues

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:

The dollar is recovering early in the US session on better-than-expected employment data. However, at the moment it remains the weakest in a week. The momentum to buy the dollar does not yet guarantee a reversal. At the moment, there are multidirectional dynamics in the foreign exchange markets, with a moderate fall in the sterling and the euro. Stock markets are marking time, waiting for new events, in particular, the latest presidential debate before the US elections. Global Treasury yields also remained largely unchanged in a narrow range.

The US incentive saga continues. House Speaker Nancy Pelosi said Democrats were “about to get close” to a coronavirus-boosting deal with the White House, but also warned of a bill that could take some time for Congress to pass.

The dollar rebounded against its major competitors, while Wall Street closed higher. Government bonds declined and US Treasury yields hit new multi-week highs.

EUR/USD fell to 1.1820 and GBP/USD dipped below 1.3100. Commodity-pegged currencies posted modest gains over their US counterpart.
Sterling Takes the Limelight
EU chief negotiator Michel Barnier has arrived in London to resume trade talks after a week-long deadlock, backing the pound. Barnier and his British counterpart David Frost intend to engage in intensive negotiations, although both acknowledged “significant gaps” remain the most challenging areas, such as fishing rights and a level playing field, under EU requirements.

The dollar is moderately recovering today in the Asian session but overall remains weak, as it is so far the worst indicator in a week.

The sellers seem to be taking a breather, for now, waiting for new developments in terms of fiscal stimulus, as well as the latest presidential debate before the election. At the moment, the largest European currencies are the best of the week: first the pound sterling, then the euro. Commodity currencies will not benefit much from the dollar sell-off.

GBP/USD is currently trading at 1.3092 and is down about 0.36% at the time of writing on Brexit issues. The price fluctuated on Thursday between the 1.3070 and 1.3152 range, bringing back a positive rally in Brexit sentiment as it deteriorates towards the end of the week.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News