Forex Signals – Dollar on backfoot

TOKYO (Reuters) – The dollar nursed losses against most of its peers on Thursday amid fading hopes for a compromise between Republicans and Democrats over additional economic stimulus.

Dollar loses out on growing optimism about virus vaccine

Forex Signals - Dollar on backfoot

FILE PHOTO: U.S. dollar notes are seen in this November 7, 2016 picture illustration. Picture taken November 7. REUTERS/Dado Ruvic

In Asia, the focus was on the Australian dollar ahead of data that is expected to show slowing jobs creation and rising unemployment as a resurgence of the coronavirus rocks the economy.

The greenback was hampered by a decline in Treasury yields, but analysts say this is likely only a temporary setback because U.S. lawmakers will eventually agree to more stimulus to support economic recovery from the coronavirus.

“The dollar needs positive news on stimulus to rise further, but I’m sure we’ll get there, because these politicians can’t go back to their constituencies empty handed,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities in Tokyo.

“Once this happens, gains in dollar/yen could be a catalyst for dollar gains against other currencies.”

Against the euro (EUR=D3), the dollar traded at $1.1786 following a 0.4% decline on Wednesday.

The British pound held steady at $1.3034.

The dollar was quoted at 0.9122 Swiss franc after falling around half a percent against the safe harbour currency during the previous session.

Forex Signal Dollar Down Amid Rising U.S.- China Tensions

The dollar fared slightly better against the yen, trading at 106.87, near a three-week high. Forex Signals – Dollar on backfoot

President Donald Trump accused congressional Democrats on Wednesday of not wanting to negotiate over a U.S. coronavirus aid package as top Republican and Democratic negotiators traded blame for a five-day lapse in talks over relief legislation.

FOREX – U.S. Dollar Down Amid Improved

The pandemic has taken a particularly heavy toll on the United States, where it has killed more people than any other country. Millions of U.S. workers have lost jobs, and supplemental federal unemployment benefits expired last month.

Euro to Pound Sterling Exchange Rate

Market sentiment has swung between optimism and pessimism, but analysts argue that more stimulus is the most likely outcome because without it the U.S. economic recovery could stall.

Forex Signals Dollar finds footing

The U.S. dollar index against a basket of major currencies fell 0.3% on Wednesday but is still well above the two-year low it reached last week.

Forex Signals – US Dollar Up After COVID-19 Recovery

Elsewhere in currencies, the Australian dollar was little changed at $0.7165 as traders braced for the closely-watched jobs report for July.

EUR/USD Weakens After ECB Stimulus Fails

A resurgence of coronavirus cases in Melbourne has rattled confidence in Australia’s economy.

Across the Tasman Sea, the New Zealand dollar bought $0.6577, stabilising after the country’s central bank expanded quantitative easing and flagged the prospect of negative interest rates.

The dollar was down on Thursday morning in Asia, reversing its gains from the day before over the U.S. Congress’ inability to reach a consensus for the country’s latest COVID-19 stimulus package.

U.S. President Donald Trump went so far as to accuse Democrats on Wednesday of not wanting to negotiate over the package, with Republican and Democratic negotiators trading barbs and blame as negotiations ended without a result for the fifth day.

COVID-19 continues to impact U.S. economic recovery, with almost 5.2 million cases in the U.S. alone as of August 13, according to Johns Hopkins University and millions unemployed.

Although investors have swung between optimism and pessimism over the stalled package, some argued that U.S. economic recovery depended on both sides reaching an agreement.

“The dollar needs positive news on stimulus to rise further, but I’m sure we’ll get there, because these politicians can’t go back to their constituencies empty handed,” Masafumi Yamamoto, chief currency strategist at Mizuho Securities, told Reuters.

Forex Signals – The U.S. dollar was down

“Once this happens, gains in dollar/yen could be a catalyst for dollar gains against other currencies.”

The U.S. Dollar Index that tracks the greenback against a basket of other currencies was down 0.18% to 93.237 by 9:52 PM ET (2:52 AM GMT).

The USD/JPY pair fell 0.17% to 106.70.

The AUD/USD pair was up 0.08% to 0.7167, with the Australian Bureau of Statistics releasing a positive jobs report for July earlier in the day. The report said that 114,700 jobs were added in July, beating analyst expectations of 40,000 jobs prepared by Investing.com. July’s unemployment rate of 7.5% also beat expectations.

But the country’s fight against COVID-19 goes on, although the country was poised to report its lowest one-day rise in the number of cases in more than three weeks on Thursday.

Forex Signals Brief for May 21st Can US Jobs Improve

The battle against the virus also continues across the Tasman sea, with New Zealand reporting 14 new cases on Thursday. The NZD/USD pair inched up 0.01% to 0.6578.

FX Signals

The USD/CNY pair was up 0.03% to 6.9383, with Chinese officials widely expected to bring up Trump’s ban of the TikTok and WeChat apps, due to be enforced in September, during an online meeting with U.S. officials on Saturday. The two sides will also discuss trade, as well as air other grievances, during the meeting.

The GBP/USD pair gained 0.24% to 1.3064.

Trade better, discover more Forex Signals Strategies
Better Still Sign Up For our FX Signals Daily
Read more on Forex News Today
Download our Forex Signals APP

Join our 21,345  Subscribers Forex Signal Packages!!

forex signals