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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.

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:

Pelosi recalls House for emergency vote to ‘save’ the postal service from Trump’s ‘campaign to sabotage the election’

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

Taking into account transactions in both foreign and U.S. securities, net foreign purchases of long-term securities were $113.0 billion.

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