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Volatility was low for the Greenback this week, and after an early week bounce, the U.S. dollar felt the selling pressure once again as traders priced in uncertainty with the latest U.S. government stimulus package, improving global economic data, and lots of  mixed commentary from Federal Reserve officials.

Overlay of USD Pairs: 1-Hour Forex Chart
Overlay of USD Pairs: 1-Hour Forex Chart
USD Weekly Performance from MarketMilk
USD Weekly Performance from MarketMilk

United States Headlines and Economic data

Monday:

ISM Manufacturing PMI for July: 54.2 vs. 52.6 in June

U.S. manufacturing operating conditions improve for the first time since February – IHS Markit

Fed’s Kaplan: data doesn’t support firms’ complaints on jobless benefits

Fed’s Bullard: Recovery looks to have slowed in July, no smooth track ahead

U.S. labor market is weakening, Fed’s Kaplan says

Fed’s Barkin says economy faces ‘sinkhole’ without more fiscal support

Democrats and Trump officials leave ‘productive’ meeting, but still don’t have a coronavirus relief deal

After an Asia and London session bump higher for USD on no apparent catalysts, sellers on the Greenback stepped in during the U.S. session, likely on improving global economic sentiment (Eurozone manufacturing economy returns to growth in July, U.K. output growth at 32-month high as reopening of manufacturers and clients gathers pace, Japanese business expectations continue to rebound from April’s low point) prompting traders to moving more into risk assets. Positive sentiment on U.S. businesses and falling bond yields were also a likely driver for the Greenback’s turn lower all the way through Wednesday’s trade.

Tuesday:

U.S. factory orders beat expectations in June

Democrats and Trump officials had ‘productive’ meeting, but still don’t have a coronavirus relief deal

New York Current Business Conditions 15-month high 53.5, Six-Month Outlook 49.6

Wednesday:

U.S., Chinese officials to meet Aug. 15 to assess trade-deal compliance

The U.S. dollar’s fall stabilized and bottomed for the week out on the session, correlating with the highly disappointing ADP private payroll report (167K jobs added vs. 1M expectations) that likely sparked risk-off vibes in the market.

Fed Vice Chair Clarida still sees the economy staging a comeback this year

U.S. trade deficit fell to $50.7 billion from $54.8 billion in June

Fed’s Evans says the power to get the economy going lies with Congress

ISM Services PMI for July: 58.1 vs. 57.1 in June

Stimulus Talks Accelerate With Lawmakers Under Pressure to Act

Fed’s Mester says labor market is even weaker than data suggests

Thursday:

U.S. weekly jobless claims ease, layoffs jump 54% in July

McConnell believes Dems, GOP will reach virus relief deal ‘in the near future’

Friday:

We saw a broad U.S. dollar rally ahead of the highly anticipated U.S. Non-farm payroll report, likely due to broad negative risk sentiment driven by  rising geopolitical tensions between the U.S. and China, and/or the eventual failure of the U.S. government to come up with a stimulus package before the end of the week.

Non-farm payrolls increased by 1.763 million jobs last month after a record 4.791 million in June

U.S. Consumer borrowing increases in June after declining at start of pandemic

Coronavirus stimulus talks fall apart in ‘disappointing’ meeting between Democrats, White House

U.S. wholesale inventories decline further in June