- US Dollar Index (DXY) remains weak near 92.60.
- Stimulus talks keep the dollar under pressure.
- The Fed’s Lael Brainard said US recovery is uncertain and uneven.
- US Dollar Index trades lower to 92.60
US Dollar Index softens in risk-on trade
The DXY comes under pressure and declines to 92.65/60, levels last seen in early September.
Optimism is growing that US policymakers could agree to additional fiscal stimulus before the Presidential elections in 2 weeks lifting the mood in the market, and dragging on the greenback.
House Speaker N.Pelosi and Treasury Secretary S.Mnuchin are due to continue talks later.
The FOMC’s dovish policymaker L.Brainard stressed the need for additional fiscal stimulus, particularly as the US recovery is seen as highly uncertain and uneven. Brainard forecasts inflation remaining under -2% levels for the next few years.
Cleveland Fed L.Mester (voter, hawkish) is due to speak ahead of the EIA’s weekly report on US crude oil stockpiles.