- The US dollar index couldn’t sustain the pullback to the 94.00 region.
- Markets worry over the news of Trump’s health.
- Non-farm job numbers are the highlight of the day.
The US dollar index fell from earlier highs today near 94.00 and was trading at 93.70 ahead of the London open. The index has seen four straight days of pullback as the global markets displayed improved risk sentiments.
The expectations of another US stimulus package have been gaining strength in recent days. Still, the latest signals are less hopeful regarding the progress of deal talks between the two political camps. The mood around the buck got further hit after the US President was tested positive for the coronavirus.
In the US session today, market participants will await the monthly job numbers for a firm trend in the dollar while the final print of the Consumer Sentiment, Factory orders and Philly Fed Patrick Harker’s speech will add or subtract from its effect.
DXY has been trading down this week, reflecting the weakness of the US dollar against its major competitors, after touching its two-month high near 94.70 on September 25. Occasional pullbacks sometimes offset the bearish mood in the dollar, but the chances of a sustained up-move are rather feeble.
Fed’s lower-for-longer stance is a key weight over the dollar value added to by the hopes of global economic recovery and the bearish tilt of traders. The political uncertainty and the possibility of further fiscal and monetary stimulus are also in play in the greenback.
