Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Dollar Down, Continuing Decade-Long Losing Streak on U.S. Economic Recovery Doubts

ForexAug 09, 2020 10:25PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Gina Lee – The dollar was down on Monday morning in Asia, despite Friday’s better-than-expected U.S. payrolls report which pushed Treasury yields higher.

Non-farm payrolls rose by 1.763 million in July, against the estimated 1.6 million increase. The unemployment rate also fell to 10.2% in July, compared to June’s reading of 10.5%.

But continuing doubts over the U.S. economic recovery remain, with the U.S. surpassing the grim milestone of five million COVID-19 cases as of August 10, according to Johns Hopkins University. The dollar’s longest losing streak in a decade has also left a structural gap in much of the market for the currency, as well as leaving it vulnerable to a squeeze on any positive news.

“Our portfolio has been positioned for a number of weeks now for a narrowly weaker USD as a consequence of the independent surge in COVID-19 infections in the U.S. that has opened up a decent gap in near-term economic performance, especially against Europe,” analysts at JPMorgan (NYSE:JPM) in a note.

Meanwhile, U.S. President Donald Trump kept his promise to take executive action if the U.S. Congress failed to reach a consensus over the country’s latest stimulus measures. Trump signed four executive orders on Saturday related to COVID-19 economic relief, unemployment benefits, a temporary payroll tax deferral, eviction protection and student-loan relief.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin also said on Sunday said they were open to continuing talks for further COVID-19 stimulus measures.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies was down 0.11% to 93.308 by 10:16 PM ET (3:16 AM GMT).

The USD/JPY pair fell 0.12% to 105.78. Japanese markets were closed for a holiday.

The AUD/USD pair gained 0.21% to 0.7172 and the NZD/USD pair was up 0.06% to 0.6606.

The USD/CNY pair rose 0.05% to 6.9697. China reported a better-than-expected consumer price index for July, with a 0.6% increase month-on-month and a 2.7% increase year-on-year. The producer price index also beat expectations, although it shrank 2.4% year-on-year in July.

Investors are also keeping an eye on simmering U.S.-China tensions after the U.S. imposed sanctions on senior Hong Kong and Chinese officials, including Hong Kong’s Chief Executive Carrie Lam, on Friday. Officials from both sides are still scheduled to meet to discuss trade later in the week, on August 15.

The GBP/USD pair gained 0.18% to 1.3074.

Dollar Down, Continuing Decade-Long Losing Streak on U.S. Economic Recovery Doubts

Related Articles

Column: Pound hesitates in face of early BoE hike
Column: Pound hesitates in face of early BoE hike By Reuters - Sep 17, 2021

By Mike Dolan LONDON (Reuters) - Although markets have become increasingly aggressive in pricing a UK interest rate rise as soon as next May - several months at least before the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email