US Dollar Turns Bearish Over Uncertainty About Coronavirus Relief Bill
The slight rebound in the US dollar over the previous few sessions has come to a halt as the greenback weakens early on Tuesday over concern
The slight rebound in the US dollar over the previous few sessions has come to a halt as the greenback weakens early on Tuesday over concerns about the government failing to roll out the next round of stimulus in the form of the coronavirus relief bill. At the time of writing, the US dollar index DXY is trading around 93.52.
After one of the worst performances in around 10 years during July, the US dollar had initially started to bounce back at the beginning of this month, having gained around 1.8% on Monday. However, there is considerable uncertainty keeping the dollar under pressure, with traders unsure of whether the rebound was driven by a renewed interest in the currency or if the moves were the result of a correction in markets.
During the previous session, positive economic data from the US lent support to the dollar, helping it strengthen on hopes of economic recovery in the country following the pandemic. However, coronavirus cases continue to climb higher in the US as well as in several other countries around the world, denting any slight optimism being provided by economic data releases.
The US dollar is also facing some pressure to the downside as a result of a failure to reach a consensus on rolling out a new fiscal stimulus package. While discussions between Democrats from Congress and negotiators from the White House had made some progress, both sides are yet to come to an agreement over the issue of weekly unemployment benefits so far.
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