Let us check the market. Investors waited for fresh news on whether the new United States fiscal stimulus is probable in the near term. Thus, on Thursday, the U.S. dollar edged higher against a basket of currencies. Nevertheless, it was held in its current range.
On Tuesday, the U.S. President Donald Trump halted negotiations with Democrats on a new economic package. Nevertheless, later it pushed for the approval of more targeted stimulus bills. It is to offset economic damage from the coronavirus. Thus, the greenback has been whipsawed by swings in risk sentiment.
On Thursday, there was little new information to move the U.S. dollar powerfully in either direction.
Marc Chandler works for Bannockburn Global Forex in New York. He is a chief market strategist there. So, Chandler said that they are just really consolidating. He thinks that right now, the market lacks near-term conviction. It is partially uncertain about the United States fiscal policy and sensitivity to these United States presidential tweets. Moreover, Chandler said that there is no new news to shake things up in one way or another.
Against a basket of major currencies, the dollar index gained 0.12% to 93.73. on September 25, it has fallen from a two-month high of 94.75.
Against the Japanese yen, the greenback was little changed at 105.97 yen. Meanwhile, the common currency decreased by 0.17% to $1.1740. Also, the United States dollar index weakened in the past two weeks on bets that presidential candidate of Democrats Joe Biden will most probably win the November 3 United States election. Also, Democrats can win the Senate.
That sweep can make more massive fiscal stimulus more probable. Thus, it will weaken the United States’ currency.
Marshal Gittler works for BDSwiss. He is head of investment research there. SO, Gittler said that investors are focusing more on the increasing odds of a Biden win.
That is the situation of the United States.