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The Dollar Pullback Continues on Hopes of a COVID-19 Stimulus Package

Bob Mason
·3 min read

Earlier in the Day:

It’s was a particularly quiet start to the day on the economic calendar this morning. There were no material stats to provide the markets with direction early in the Asian session.

A lack of stats left the markets to focus on progress towards a U.S stimulus package that weighed on the Greenback early on.

The Majors

At the time of writing, the Japanese Yen was up by 0.13% ¥105.36 against the U.S Dollar. The Aussie Dollar was up by 0.27% to $0.7067, with the Kiwi Dollar up by 0.20% to $0.6594.

The Day Ahead:

For the EUR

It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone to provide the EUR with direction.

A lack of stats will leave the EUR in the hands of COVID-19, Brexit, and U.S politics.

At the time of writing, the EUR was up by 0.09% to $1.1833.

For the Pound

It’s a relatively busy day ahead on the economic calendar. September inflation figures are due out later this morning.

With the Bank of England ready to drop rates into negative territory, expect Pound sensitivity to the numbers.

Direction on the day will ultimately come from Brexit and COVID-19 news updates. Boris Johnson left the door ajar and the EU has talked of a willingness to continue negotiating. A willingness to return to the table suggests a willingness to compromise. It remains to be seen, however, whether EU member states can bring Macron on board… Talks on Tuesday had failed to deliver.

At the time of writing, the Pound was up by 0.12% to $1.2963.

Across the Pond

It’s a particularly quiet day ahead for the U.S Dollar.

There are no material stats due out of the U.S to provide the markets with direction.

A lack of stats will leave U.S politics and COVID-19 in focus. We can expect plenty of market reaction to chatter from Capitol Hill on the day.

There are also the U.S Presidential and the Senate elections to consider… The markets are looking for that blue wave…

At the time of writing, the Dollar Spot Index was down by 0.07% to 93.006.

For the Loonie

It’s a busy day ahead on the economic calendar. Key stats include September inflation and August retail sales figures.

Expect plenty of influence from the numbers ahead of the BoC’s monetary policy decision next week.

The weekly EIA crude oil inventory numbers will also influence later in the day.

Away from the economic calendar, COVID-19 news updates will remain a key driver, however.

At the time of writing, the Loonie was up by 0.14% to C$1.3110 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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