US Dollar Gains as Stimulus Talks Fail to Make Progress
The US dollar is making gains against its riskier counterparts after discussions about the next round of fiscal stimulus measures failed to
At the beginning of a brand new trading week, the US dollar is making gains against its riskier counterparts after discussions about the next round of fiscal stimulus measures failed to make any headway. At the time of writing, the US dollar index DXY is trading around 93.05.
The past week saw the dollar trade bearish and posting the steepest loss in six weeks amid rising expectations for the coronavirus relief package to get finalized soon. Whenever s government rolls out fiscal stimulus initiatives to prop up its economy, it weakens the currency.
Last Friday, President Donald Trump announced a package worth $1.8 trillion, lower than the $2.2 trillion one the Democrats have worked out. However, Trump’s plans were met with criticism by several members from his own party over worries of ballooning debt and prospects for the party in the upcoming elections.
Meanwhile, the Chinese Yuan strengthened to the highest level in 17 months against the US dollar after the PBOC announced measures that could possibly control the appreciation in the currency. The GBP is also trading steady, close to the highest level in a month, amid cautious optimism that Britain and the EU could finalize a trade deal within this week.
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