We saw a busy week of news flow for the U.S. dollar with catalysts ranging from political news, lots of Fed speak and mostly signs of improvement from the latest U.S. economic updates.
But the likely main driver for the Dollar’s relative underperformance was steadily rising positive risk sentiment as traders focused on a potential new stimulus package potentially coming soon from the U.S. government.
Overlay of USD Pairs: 1-Hour Forex Chart
USD Weekly Performance from MarketMilk United States Headlines and Economic data
Cleveland Fed’s Mester says U.S. must do more to promote inclusive economy Manufacturing Activity in Texas Quickens in September to a 2-Year High — Dallas Fed
House Unveils New Stimulus Package as Pelosi and Mnuchin Resume Talks
Philadelphia Fed’s Harker: Recovery ‘should continue’ if new virus outbreaks limited
U.S. goods trade deficit rises; inventories increase
NY Fed’s Williams stresses importance of financial markets resilience
S&P CoreLogic Case-Shiller Index Reports 4.8% Annual Home Price Gain in July
US Consumer confidence to the moon in September – largest gain in 17 years
Companies added better than expected 749,000 jobs amid jump in construction, hospitality, ADP says
Chicago Business Barometer – Surges to 62.4 in September
US Mortgage applications decreased 4.8% from one week earlier
U.S. economy plunges 31.4% in the second quarter but a big rebound is expected
A round of broad risk-on behavior was likely the spark for the drop in USD during the U.S. session after
Treasury Secretary Mnuchin said he is ‘hopeful’ White House and Democrats can strike a coronavirus stimulus deal
U.S. pending home sales race to record high in August One Day, Thousands of Job Cuts: Economic Pain Is Deepening
Fed’s Kashkari expects continued economic recovery but only in a ‘grinding’ fashion
Fed’s Bowman sees bumpy recovery, warns on asset prices
Fed’s Bullard Breaks With Peers on Fiscal Aid, Says It Can Wait
U.S. weekly jobless claims total 837,000, vs 850,000 estimate
Trump signs bill to prevent government shutdown after funding briefly lapses
House delays vote on $2.2 trillion coronavirus stimulus bill to allow more time for talks
U.S. Consumer spending rose in August; economy on track for record Q3 growth
IHS Markit U.S. Manufacturing PMI: Strongest improvement in operating conditions since January 2019
Job cuts announced by U.S.-based employers jumped up 2.6% m/m to 118K, up 186% y/y
ISM Manufacturing PMI for September was down 0.6 to 55.4.
The last Asia session drop in USD correlated with news that U.S. President Donald Trump tested positive for COVID-19.
White House says Trump ‘not incapacitated’, working from isolation; Pence negative Trump experiencing ‘mild symptoms’ after coronavirus diagnosis
this was a big disappointment, but the reaction to the update was mild as the markets were focused on developments with the U.S. President. Nonfarm payrolls rose by 661,000 in September, lower than the 800,000 Dow Jones estimate –
University of Michigan Consumer sentiment revised to 80.40 in Sept. vs. 74.2 in August.
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