Not even Trump’s signage of the long-awaited stimulus package could propel dollar movements as investors remain quiet amid the holiday mood.
The greenback successively traded in the red before the Christmas break, pulled down by flagging economic indicators in the United States.
Last week, Trump threatened to block the $900 billion stimulus bill. He even called it a “disgrace” due to its value which dragged direct payments to $600 per beneficiary.
Today, the US leader signed a $2.3 trillion worth of pandemic aid and spending package.
In the latest developments, policymakers are set to convene to vote on increasing the checks to $2,000.
With the seemingly quiet session, the USD index managed to steady at 90.224 against other major entities in the basket.
After the announcement, the euro retreated anew from the two and a half year low it touched earlier in the month.
The common currency slipped 0.1% to $1.2199 with analysts noting that it could hover on the bearish territory for a longer period.
Last week, it managed to settle a trade deal with Britain amid the Brexit drama which sent investors sky-high.
However, analysts noted that the agreement lacks stringent measures in many areas, especially in the services sector.
In an analysis, a foreign exchange strategist noted that the EUR/USD exchange could drag further to reach $1.15 by the end of the summer next year.
The forecast for the pair remains lukewarm despite the approval of the Brexit deal. This is due to the anticipation that the separation would bring forth a painful dent for both parties.
Such will encompass areas including trade, security, fishing rights, among others.
In Asia, the USD/JPY exchange remained steady at 103.63.
Pound Cheers on the Stimulus
Meanwhile, while its counterpart fell below a multi-year low, the pound managed to buoy itself from the dirt.
The British currency added 0.1% to $1.3544. Analysts noted that it could touch another 2 ½ years high anytime soon.
For the record, it managed to touch $1.3625 earlier in the month, capitalizing on a weaker dollar.
The sterling cheered on the presence of the post-divorce trade agreement with the European Union which means that it will receive a less-painful economic hit than expected.
In the latest developments, the United Kingdom prepares to sign a free trade agreement with Turkey. Ankara and London are expected to announce their partnership later in the week.
While the GBP continues to benefit from the latest events, analysts noted that the longer-term forecast for the pound remains bearish.
Experts asserted that it could fall to $1.30 against the USD mid next year.
- Trading Instrument