USD fell to its lowest level in more than two years against the euro. The postponement of stimulus or assistance packages related to the COVID-19 is one of the reasons. Market participants speculate that the possibility of additional financial assistance is still likely to be launched. 

The USD was also depressed near its lowest level in two years against the Australian dollar and the New Zealand dollar. The U.S. Senate majority leader, Mitch McConnell, postponed talks to increase the Covid-19 relief fund to $2,000 yesterday. 

For your information, the USD has been under pressure since President Donald Trump signed the Covid-19 relief fund a few days ago. As long as the value of the aid is still uncertain, many analysts expect the U.S. Dollar will remain under pressure until next year. 

mo ta hinh anh

Biden May Provide More Stimulus

There is one reason why America will probably continue to be under pressure until next year. That's because it's likely that President-elect Joe Biden will provide more stimulus. Many investors and market participants are confident that this will be done by the new president.

The dollar index is tracked to move in the range of 89.79 as of yesterday morning. That position is not far from its lowest level in two years. In addition, the market is also expected to move in a thin range. 

This is likely to occur amid low market liquidity due to the holiday later this year. People expect that the chairman of the senate immediately takes the decision to make a vote. The move is needed given that previously Trump had the idea of increasing the amount of funding.

Gold Prices Tend to Stable

It is so interesting that in fact, prices tend to stabilize after Mitch McConnell postponed the vote. Previously, the agenda was scheduled to discuss increasing the amount of Covid-19 assistance for U.S. citizens. So far, his help is still at less than $1000.

However, President Donald Trump is proposing to raise aid for each U.S. citizen to $2,000. That is why; McConnell decided to delay agreeing to the deal. The situation occurred about three weeks before his party colleague left the U.S. presidency and was replaced by Joe Biden.  

Elsewhere, the U.S. treasury secretary, Steven Mnuchin, said a $600 relief fund that was part of a $2.3 trillion stimulus package was passed last week. The assistance is considered quite effective and will be distributed as soon as there is a legal decision. 

The gold’s price reportedly moved in the range of $1,882.55 per troy ounce as of yesterday morning. Commodity prices rose following the launch of stimulus to protect the economy from the effects of the pandemic. Although the number is still uncertain, gold is still stable.

Oil Prices Also Raise

Oil gained on Wednesday. That was supported by a weaker dollar, a drop in U.S. crude inventories, and when the U.K. approved another coronavirus vaccine. However, the benchmark two contracts are set to end the year at a rate of about 20% lower than before.

Brent crude futures rose as much as 45 cents to $51.54 a barrel. That position fell after earlier starting the year above $66. U.S. West Texas Intermediate (WTI) crude also rose 39 cents and was later trading at $48.39. That level includes a drop from about $62.

The situation in the market is due to ongoing concerns about restrictions related to the coronavirus. Lockdown in various countries weighed on fuel demand and was offset by several bullish factors. The US dollar hit its lowest level against several currencies since 2018.

This is what makes oil prices cheaper for holders of other currencies. Based on the information, UK will be the first country that will approve a vaccine product. That is one which is developed by the Universities of Oxford and AstraZeneca. That may be produced on amassed soon.