The US dollar is one of the major commodities in a forex market. That is why; any updates about it are always interesting to be known. In addition, knowing the information around this currency is also crucial to help you in trading.
The US dollar weakened in early European trade Monday (17th of August, 2020) weighed down by concerns about the US economic recovery as political tensions escalated in the country. It is also ahead of the release of the latest Federal Reserve minutes.
Based on some sources, until now this currency is still at its lowest level; it is for sure bad news for several traders. However, this condition can change and you can say it is so dynamic. That is why; ensure to equip you with enough information.
The Detail Data
The index of the US dollar that tracks the greenback against 6 world currencies was reportedly down 0.2% at 92.933. Besides, the EUR/USD was up 0.2% at 1.1863. Meanwhile, USD/JPY decreases to 106.42. It is because of the biggest economic contraction on record in the second quarter.
The number of jobless claims fell below the one million marks last weekend for the first time since the Covid-19 outbreak. However, it is hard to celebrate given the grim reality that more than 30 million Americans are out of work.
The coronavirus disease also takes a role. The United States surpassing 170,000 deaths because of these diseases on Sunday. It is based on the data from Johns Hopkins University. The country's public health officials and authorities are concerned about a possible re-emergence of cases.
With the Democratic Party's national convention starting on Monday, traditionally the starting point for the November presidential election. Both sides appearing to move further away from the previous one, a compromise that yields a new stimulus package looks an unlikely prospect.
The Hope and Possibility
The latest row between the two warring factions has centered on the US Postal Service. The democrats are accusing President Donald Trump of trying to cripple a cash-strapped organization to suppress the ballot by mail. The particular interest appears this week.
It is the release of the Federal Reserve's minutes on Thursday. The markets are looking for clues about a possible change to central bank guidance at its next meeting in September. Market participants will be looking for insight into the details and precise timing.
It is when the Fed's Monetary Policy Review will be completed, as well as for further clarity with respect to the timing and potential structure of any changes for future guidance. That was said by the analysts at NatWest Markets, in a Reuters report.
These dollar losses can also be sustained in the future. It is a possibility believed by several parties in the market. What is causing this condition? The hedge funds have now turned bearish against the greenback. It happens for the first time since May 2018.
US Dollar Condition Update
The US dollar appears to be still near its lows on Tuesday (18th of August, 2020). It is after three hits from falling yields, weak US economic data, and falling safe-haven demand exerted broad selling pressure. These become the attention of some traders.
Against the currencies like euro, Aussie, pound, Swiss franc, and yuan, the US dollar is poised to retest lows made earlier in the month. It is although moves in morning trade are likely to be thin awaiting Federal Reserve minutes on Wednesday.
The investors were relieved by the postponement of a US-China trade deal review which is done this week. It has kept the pact standing and strengthened confidence that trade relations can survive even amid conflicts in other areas. It just likes new hope nowadays.
