US Dollar Set to Post Second Consecutive Weekly Loss

US Dollar Set to Post Second Consecutive Weekly Loss

Posted Friday, October 9, 2020 by
Arslan Butt • 1 min read

The US dollar is trading weak early in Friday any looks all set to post a loss for the second consecutive week as markets expect the next round of fiscal stimulus measures to roll out soon. At the time of writing, the US dollar index DXY is trading around 93.47.

After Trump abruptly called off discussions and announced a postponement of more financial aid until after the elections, House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have resumed their talks. The US dollar is facing pressure over expectations that this could mean more stimulus initiatives to support the economy could be announced soon.

Meanwhile, commodity currencies, especially those linked with crude oil, have strengthened as a result of the Hurricane Delta in the Gulf of Mexico region. This has sent crude oil prices soaring over the current week and linked currencies have also benefited.

The US dollar is holding steady against the Euro and the GBP, with the GBP supported by rising hopes for a Brexit deal. The Improvement in the risk sentiment in markets has sent the JPY to the lowest levels seen in nearly three weeks against the dollar.

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