Let us check changes in the market. Euro is remaining comfortable above $1.18. Composite PMIs and services due in the eurozone, United States. Investors are weighing prospects of further monetary easing to support the economy. U.S. bond yields sank, and a United States coronavirus relief package stalled in Congress. Thus, on Wednesday, the dollar remained weak.
Congressional Democrats and White House negotiators are trying to reach a deal on a package by the end of this week. On Tuesday, Treasury Secretary Steven Mnuchin said that progress had been made on critical components of the bill. A hardening perception is that the United States’ economic recovery is lagging, whereas Europe has strengthened the euro. It has pushed above $1.19 in the last couple of days.
The common currency traded up 0.1% at $1.1815 early on Wednesday. Against the dollar, most other major currencies were also up. It mushed its index towards last week’s two-year low of 92.53. The gold price surpassed $2,000; it is a record high. The dollar traded at 93.05.
United States Dollar and Other Currencies
Lee Hardman works at MUFG. He is a currency analyst there. Hardman said that the ongoing fall in the United States’ real yields helps lift the price of gold and to weaken the U.S. dollar. Moreover, Hardman added that the bank had lowered its forecasts for the dollar. It was on the assumption that the Federal Reserve will loosen policy further this year.
United States’ ten-year Treasury yields were close to the five-month low they hit on Tuesday.
Traders will watch the eurozone Markit Services final PMI (Purchasing Managers’ Index) at 0800 GMT. It was followed by retail sales at 0900GMT.
Reuters polled Economists. The poll and composite PMIs confirmed at 55.1 and 54.8, respectively.
Also, final United States PMI numbers are due later in the day.
That is leading news of the market.