US Dollar Holds on to its Rally – NFP Supports
Arslan Butt • 1 min read
At the start of a fresh trading week, the US dollar remains slightly bullish, maintaining the upward climb from the previous session which saw the release of a better than expected NFP report. At the time of writing, the US dollar index DXY is trading around 93.33.
Even though the US dollar is holding just above a two-year low, the outlook for the currency remains grim amid worries about the impact of the coronavirus pandemic on the US economy. In addition, the possibility of rising US-China tensions is also underpinning the greenback after the Trump administration announced sanctions on Chinese and Hong Kong officials.
There is also considerable uncertainty surrounding the progress on the coronavirus relief bill in the US, even as US President Donald Trump signed an executive order to extend unemployment benefits as well as protect tenants from getting evicted and relief on student loans. Meanwhile, senior officials in the government expressed interest in continuing talks on the relief bill, with both sides considering working out a compromise.
Later this week, the US dollar could see some moves with the release of US CPI and retail sales figures. Both data points are expected to reveal an improvement in consumer spending in the country, which could support economic recovery.