Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Weakens; Stimulus Expected to Combat Pandemic

ForexNov 27, 2020 02:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse

Investing.com - The dollar weakened in early European trade Friday, set to post weekly losses with traders expecting large-scale stimulus from the new administration to combat the Covid-19 pandemic.

At 3:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was down 0.1% at 91.892, near the three-month low since late Thursday. Volumes are likely to remain limited after Thursday’s Thanksgiving holiday in the U.S., with many traders set to enjoy a long weekend.

EUR/USD climbed 0.1% to 1.1926, close to a two-month high, while USD/JPY fell 0.2% to 104.06. Additionally, AUD/USD rose 0.2% to 0.7372, near a three-month high, while NZD/USD gained 0.2% to 0.7021, near its strongest level in over two years. 

“The dollar is back at its 2018 lows with DXY [the Dollar Index] breaking below the key 92.00 support,” said analysts at ING, in a research note, stating that the pandemic “appears particularly concerning as major U.S. cities are experiencing large spikes in cases which may fuel further speculation that President-elect Joe Biden will opt for tougher restrictions once he takes office.”

Outgoing President Donald Trump said on Thursday he will leave office if the Electoral College votes for Biden, the closest he has come to conceding the Nov. 3 election and another sign of the returning normalcy in U.S. political circles.

Biden has made it clear that tackling the pandemic is his first priority, and has called on U.S. lawmakers to pass a new stimulus bill before he officially takes office in January. His nomination of Janet Yellen, former head of the Federal Reserve who is credited with helping steer the economic recovery after the 2007 financial crisis and ensuing recession, has also played into the underlying belief that more fiscal help is on its way, likely pressurising the dollar.

GBP/USD gained 0.1% to $1.3369, near a three-month high of $1.3399 it touched on Thursday, as market participants look for progress on Brexit talks.

The European Union chief negotiator Michel Barnier will talk on Friday with some of the bloc's ministers responsible for fisheries to discuss the state of play in the trade discussions with Britain, an EU official said.

 

Dollar Weakens; Stimulus Expected to Combat Pandemic
 

Related Articles

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 Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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 (8)
Clinton Powell
Clinton Powell Nov 28, 2020 8:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
*LEFT. Anybody that thinks a lockdown is the answer is a blatant fool
Clinton Powell
Clinton Powell Nov 28, 2020 8:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The economy doesnt need more stimulus it meeds opening up and returning jobs for whatever buisnesses are less
SquadW Name
SquadW Nov 27, 2020 7:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
dollar in 20 years will be worthless as Global Economy is powered by Asia and not EU/US anymore
John Raymond
John Raymond Nov 27, 2020 6:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
fails to recognize that stimulus is wholly dependent on GOP support. Trump offered pelosi nearly 3 trln and she did not take it. huge mistake with that now highly unlikely to be revisited!!
Llewellyn Kruger
Llewellyn Kruger Nov 27, 2020 6:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The primary argument between them (which is not being publicized enough imho) Pelosi wants the stimulus bill to include funds for bailing out democratic (failed)  states but Trump won't sign off on that one key point.
Luis Angulo
Luis Angulo Nov 27, 2020 5:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Money printing. Spending more
Jan Skilbrei
Jan Skilbrei Nov 27, 2020 4:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
its irony, children lack medicine, baby tor tured for genious musuc, Sir fake genious, keep money, folks forced help him ste al charity money, please ask for charity we only live once, why help tyra ns with an impossible plan, demanf free speech, help free speech, not worh ly ing
Samui Lo
Samui Lo Nov 27, 2020 3:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Rotation into stimulus "Hope" is back on
Ridha B younes
Ridha B younes Nov 27, 2020 3:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
stimulus talk is back . before this year end ? just asking if any one have in site. thanks in a advance
Raffi Mckringleberry
Raffi Mckringleberry Nov 27, 2020 3:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it never left the talks.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 Investing.com'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
or
Sign up with Email