US Dollar Steady But Set to Post Weekly Decline

The US dollar is holding steady against other major currencies but could weaken as the presidential election results emerge and hopes for a

US Dollar Steady But Set to Post Weekly Decline

Early on Friday, the US dollar is holding steady against other major currencies but could weaken as the presidential election results emerge and hopes for a large coronavirus relief package start to fade with Republicans expected to retain power in the Senate. At the time of writing, the US dollar index DXY is trading around 92.61.

Markets are widely anticipating Democrat Joe Biden to take over from Trump but with Republicans holding on to their majority in the Senate, the Democrats may not be able to pass the large fiscal stimulus they have been planning for. Without more fiscal stimulus, the US economy is expected to suffer, and this sentiment could keep the US dollar under pressure in the coming sessions.

Meanwhile, Trump has been threatening legal action to challenge vote counts in certain states where he is lagging, adding to the uncertainty around the election results. Trump’s actions are also reducing investor confidence in the US economy and dollar for now.

So far this week, the dollar has lost around 1.5% of its value and looks set to post the largest weekly decline in nearly four months. Later today, the greenback could also see some movement on the release of the NFP report, with economists expecting a decline in the number of new jobs.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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