Dollar Just Lower than predicted

Dollar Just Lower than predicted

FxPremiere.com – Forex Signals | The dollar edged marginally lower Thursday, pausing its recent rebound from near three-year lows on the back of higher U.S. yields as traders expect further substantial stimulus measures.

Dollar Down Over Brexit, U.S. Stimulus Risks

At 3:55 AM ET (0755 GMT), the U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, was down just 0.04% at 90.302, holding just above the 89.206 low seen for the first time since March 2018 last week.

Live Forex News

USD/JPY was up 0.1% at 104.00, EUR/USD fell 0.1% to 1.2155, GBP/USD climbed 0.2% to 1.3666, while the risk-sensitive AUD/USD was up 0.3% at 0.7756. Forex Signals – Dollar Edges Higher

CNN reported overnight that President-elect Joe Biden will look to outline plans later Thursday of a fiscal stimulus package of around $2 trillion. Dollar Down Over U.S. Stimulus Hopes

FX Signals

Another factor which has supported the dollar of late has been recent concerns that the Federal Reserve may taper its monetary support sooner than had been originally expected as the economy recovers.

Telegram Forex Signals

Chairman Jerome Powell is scheduled to speak around 12:30 PM ET (1630 GMT), and this speech will be parsed for clues as to when its bond-buying program may be eased back. Dollar Down Over U.S. Stimulus Hopes

However, many analysts expect the currency’s bounce to be temporary, and longer term they expect more U.S. stimulus to support risk sentiment, weighing on the greenback, which is traditionally considered a safe-haven.

“As long as the Fed sticks to its Average Inflation Targeting framework, allows for the CPI overshot and keeps rates on hold (our base case for this year and next), the deeply negative real rate will weigh on USD,” said ING analysts, in a research note.