Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Dollar Up, Hopes of Fed Monetary Stimulus Rise

ForexNov 18, 2020 09:16PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Gina Lee – The dollar was up on Thursday morning in Asia, clawing back gains from earlier losses. The market saw small moves as the number of COVID-19 cases globally continues to rise incessantly, and expectations of further monetary stimulus from the U.S. Federal Reserve begin to grow.

“Central bankers continue to offer promises of almost endlessly easy money. That, when U.S. COVID-19 infection rates are causing enough concern about growth prospects to offset vaccine news, has kept the dollar on the back foot, even as equities soften," Societe Generale (OTC:SCGLY) currency strategist Kit Juckes told Reuters.

The U.S. Dollar Index Futures that tracks the greenback against a basket of other currencies inched up 0.09% to 92.472 by 10:07 PM ET (2:07 AM GMT). It has been on a downward trend in general, despite stocks also slipping, as the recently released industrial production and retail sales data highlighted the fragility of the U.S. economic recovery.

The USD/JPY pair inched down 0.01% to 103.81.

The AUD/USD pair edged down 0.14% to 0.7295. The AUD saw a slight lag as South Australia imposed a lockdown to curb a fresh COVID-19 outbreak in the state, which overshadowed positive labor data released earlier in the day. The country’s employment change grew by 178,800 in October, beating the expected 30,000 contraction and the 29,500 contraction in September. The unemployment rate for the month was 7%, also beating the forecast 7.2% reading.

Across the Tasman Sea, the NZD/USD pair was down 0.25% to 0.6907.

The USD/CNY pair edged up 0.11% to 6.5659, with the yuan near a 29-month high in offshore trade.

The GBP/USD pair was down 0.22% to 1.3239. The pound had been boosted by hopes of the U.K. and the European Union reaching a post-Brexit trade deal ahead of the end-of-year deadline.

COVID-19 continues its global rampage, and the increasing number of global cases continues to concern investors. The U.S. remains in a “severe recession” and growth is vulnerable to swings in infection rates, New York Federal Reserve President John Williams (NYSE:WMB) warned on Wednesday. Williams also reiterated that the central bank would use all its tools to help in the economic recovery.

New York City, the country’s largest public school district, said that it would suspend in-person teaching from Thursday to curb the spread of COVID-19 in the city. The number of U.S. deaths surpassed 250,000 as of Nov. 19, according to Johns Hopkins University data.

Investors will also look to U.S. jobless claims data, due later in the day, which is expected to dictate the Fed’s next steps. Across the Atlantic, European Central Bank President Christine Lagarde will attend a European Parliament Committee hearing in Frankfurt later in the day.

Dollar Up, Hopes of Fed Monetary Stimulus Rise

Related Articles

Ukraine tensions lift dollar, send euro lower
Ukraine tensions lift dollar, send euro lower By Reuters - Jan 24, 2022

By Herbert Lash and Sujata Rao NEW YORK/LONDON (Reuters) - The dollar rose to a two-week high on Monday against a basket of currencies, lifted by rising geopolitical risk over...

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.
Comments (1)
Mohammad Atif
Mohammad Atif Nov 18, 2020 10:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
when covid start and stimulus last passed in march, dollar was down.. then why in same situation dollar is up???
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