Let us check the market news. Chinese yuan rose to a year-and-a-half high versus the United States dollar. Sterling weakened on state-aid Brexit impasse. After the final manufacturing PMI confirmed, Euro is up.
Hopes for United States fiscal stimulus and robust U.S. data left investors confident enough to seek riskier currencies. Thus, on Thursday, the U.S. dollar fell to a nine-day low.
The Chinese yuan gained the most against the United States dollar. Thus, it reached a year-and-a-half high in the offshore market. It happened because the holiday in China dried up liquidity, exaggerating the moves. Moreover, on Wednesday, Chinese data showed its economic recovery was on track.
Also, the Norwegian crown and the Australian dollar rose against the U.S. dollar.
Jeremy Stretch is head of G10 FX strategy at CIBS. He said that indeed, there had been a dent in liquidity. Thus, it usually amplifies market moves. Nevertheless, what they have seen so far is a generalized risk-on bias on optimism of a stimulus package in the United States.
Furthermore, Stretch added that there is a bit of race for Congress. The race is to get something in the books before they leave for the recess for the election. Airlines talked about laying off more than thirty-thousand workers. Thus, it does not play a positive narrative going into the election if you are the incumbent.
Administration of Republican President Donald Trump has proposed a coronavirus stimulus package to House Democrats worth more than $1.5 million. Thus, hopes rose that both parties will reach a compromise.
Meanwhile, jobs figures showed United States private employers stepped up to hire more than forecast last month. Moreover, the manufacturing of the Midwest grew faster than forecasted, also fed into optimism.
However, United States employers announced another 118,804 job cuts in September.
The day before started the fall of the United States dollar.
That is the current news of the market.
- Trading Instrument