The Greenback managed to squeeze out a net win for the week despite starting on a weak foot. After some dollar buying ahead of the FOMC minutes, traders bounced back and forth between U.S. unemployment data and euro weakness to get to its net positive performance for the week.
United States Headlines and Economic data
Monday:
National Association of Home Builders/Wells Fargo Housing Market Index jumps +6 to 78 in August
Empire State Manufacturing Survey for August 2020: 3.7 vs. 17.2 in July
FHA Mortgage Delinquencies Reach a Record, Led by New Jersey
Dollar on defensive as markets eye U.S. politics, Fed minutes
Tuesday:
U.S. housing starts total 1.496 million in July, vs 1.240 million expected
Treasury Secretary Mnuchin says Democrats are unwilling to strike a ‘reasonable’ relief deal
Pelosi Hints Democrats Might Pare Stimulus Plan, Seek More Later
U.S. Warns Colleges to Divest China Stocks on Delisting Risk
Coronavirus pandemic now driven by younger adults: WHO
Wednesday:
The Greenback was bid higher during the morning U.S. trading session, without an apparent direct catalyst. So it’s tough to say why the dollar rallied, but one can argue that traders were lightening up on U.S. dollar short positions ahead of the FOMC meeting minutes.
Trump Team Sees Path to Pared-Down $500 Billion Stimulus Deal
FOMC Meeting Minutes: Fed officials expect that coronavirus will ‘weigh heavily’ on the economy
Fed Minutes Show FOMC Backs Away From September Guidance Shift – the minutes increased the market’s uncertainty of how the Federal Reserve will move going forward. When combined with the highly dovish outlook on the economy, financial markets shifted into risk aversion mode through the rest of the Wednesday session as equities fell -0.75% and oil pulled back -0.49% after the event.
11 states approved to offer extra $300 weekly unemployment benefits
Thursday:
U.S. weekly jobless claims jump back above 1 million – this was a step back and disappointment from the previous week, which was the first time the jobless claims data came in below 1 million claims in 21 weeks. After a choppy Asia and London session, this event sparked a negative lean in the U.S. dollar for the rest of the session.
Philadelphia Fed manufacturing index slows for second straight month in August
Kudlow says U.S. remains engaged with China over trade
CDC chief Dr. Redfield says coronavirus deaths could start to fall next week
Friday:
The U.S. dollar saw broad gains starting in the London session, likely on weakness seen in the European currencies after disappointing Euro area business sentiment and negative Brexit updates sunk the pound, euro and Swiss franc for the session.
Flash U.S. Manufacturing PMI at 53.6 in Aug. vs. 50.9 in July
July U.S. home sales spike a record 24.7% as prices set a new high
July home sales spike a record 24.7% as prices set a new high
Pfizer and BioNTech say regulatory review for Covid-19 vaccine could be as early as October