For additional economic stimulus, there are fading hopes. Meanwhile, inflation figures surprised to the upside. Thus, in early European trade, the United States dollar weakened on Thursday.
The dollar index tracks the greenback against a basket of major currencies. So, at 3 AM ET (0700 GMT), the United States dollar index was down 0.3% at 93.157. GPB/USD raised 0.3% to 1.3066, USD/JPY pair decreased 0.2% at 106.72, and EUR/USD pair increased 0.4% at 1.1826.
There is an inability coming from the United States lawmakers to go to any consensus regarding the country’s latest Covid-19 stimulus package that has been weighing on the greenback. The agreement is a deal that many feel is obligatory to keep the economic recovery on track.
The United States President Donald Trump accused Democrats of not wanting to negotiate over the package. It happened on Wednesday. Moreover, Republican and Democratic negotiators trading barbs and blame as negotiations ended without a result for the fifth day.
Thomas Barkin is Richmond Fed President. On Tuesday, he stated that the economy could take another downturn if the United States policymakers fail to provide more financial aid.
On Wednesday, Federal Reserve Bank of Boston President Eric Rosengren backed him up. Thus, he said that he is ‘strongly’ supporting taking additional fiscal actions. It is to help businesses and households survive the crisis. Furthermore, Rosengren added that more robust efforts should be combined with more spending to contain the virus.
Covid-19 deaths of the United States topped 166,000 as of August Thirteen. Furthermore, the confirmed cases increased by more than 4% in the past week. Johns Hopkins University collected the data about it.
The latest inflation figures, with substantial numbers, both the consumer and producer sides added to all those problems.
Jefferies (NYSE: JEF) said in a note that the 0.6% month-on-month increase in CPI was jaw-dropping.
That is the situation in the United States.