Dollar Down Over U.S. Stimulus Hopes

FxPremiere.com – FX Signals | The dollar was down on Wednesday morning in Asia, after progress towards passing the latest U.S. stimulus measures increased risk appetite and turned investors away from the safe-haven dollar.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.07% to 90.343 by 13:06 AM ET (5:06 AM GMT). Dollar Down Over U.S. Stimulus Hopes

Progress towards a COVID-19 vaccine also boosted risk sentiment. Moderna Inc’s (NASDAQ:MRNA) COVID-19 vaccine mRNA-1273 looks set to receive U.S. regulatory authorization within the week. The U.S. also expanded its roll-out program for BNT162b2, the vaccine codeveloped by Pfizer Inc (NYSE:PFE) and BioNTech SE (F:22UAy) on Tuesday, which could see thousands more healthcare workers inoculated.

“Because of all the positives that have hit the market, from vaccines to stimulus, we’re seeing dollar weakness across the board,” State Street (NYSE:STT) Bank Tokyo branch manager Bart Wakabayashi told Reuters.

“There’s a feel-good momentum in the market,” he added.

The USD/JPY pair was down 0.21% to 103.44.

Monday and the NZD trading at 71.05 U.S. cents, after reaching 71.20 Monday for the first time since April 2018.

The USD/CNY pair inched up 0.05% to 6.5421.

The GBP/USD pair inched up 0.01% to 1.3462. The pound held onto its gains from Tuesday as hopes for a post-Brexit deal between the U.K. and the European Union (EU) increased.

Dollar Edges Higher; Sterling Expects Brexit Progress

Chief EU Brexit negotiator Michel Barnier said on Tuesday that he sees a “narrow path” towards a deal, if both sides resolve their differences. However, U.K. Prime Minister Boris Johnson repeated that the most likely outcome of talks was no deal.

The greenback changed hands at $1.21540 per euro, near a two-and-a-half year low of $1.2177 seen on Monday.

FOREX – U.S. Dollar Down Amid Improved

In the U.S., hopes are also rising for another deal, a $748 billion bipartisan proposal for COVID-19 relief. Before tackling the proposal, Congress began a second meeting on Tuesday to finalize a $1.4 trillion spending bill for the fiscal year beginning on Oct. 1. Dollar Down Over U.S. Stimulus Hopes

Pound Rises as Vaccine Progress

The Federal Reserve will also conclude its two-day policy meeting later in the day.

FX Signals | Dollars bought as stimulus hopes

The Fed is also expected to provide new guidance on how long it will keep up its massive bond-buying program.

Dollar Down Over U.S. Stimulus Hopes Dollar Down Over Brexit, U.S. Stimulus Risks