Forex Signal Dollar Down Amid Rising U.S.- China Tensions The dollar was down on Monday morning in Asia, giving up some of its gains from Friday.
Meanwhile, U.S. Federal Reserve Chair Jerome Powell said in a separate interview that the U.S. economy could shrink up to 30% in the second quarter but will avoid a second Great Depression in the long run.
The U.S. Dollar Index that tracks the greenback against a basket of other currencies fell 0.11% to 100.325 by 11:32 PM ET (4:32 AM GMT). “Also comments last week from Fed officials around the risks to the U.S. economy being skewed to the downside, risks around a second wave of infection, I think that will also continue to underpin the U.S. dollar this week.”
The USD/JPY pair gained 0.10% to 107.12 after Japan slipped into recession for the first time since 2015.
Forex Signal Dollar Down Amid Rising U.S. – The USD/CNY pair gained 0.06% to 7.1058. The GBP/USD pair rose 0.05% to 1.211. Andrew Haldane, Bank of England chief economist, said on Saturday that the bank is considering negative interest rates.
“The economy is weaker than a year ago and we are now at the effective lower bound, so in that sense it’s something we’ll need to look at – are looking at – with somewhat greater immediacy. How could we not be [looking at negative rates]?” he said in an interview with the Telegraph.
Down Under, the AUD/USD pair jumped 0.51% to 0.6447. But there were reports of conciliatory remarks from the Chinese Foreign Ministry.
The NZD/USD pair was up 0.45% to 0.5958.