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Despite a round of net negative U.S. economic updates and Fed officials citing the need for more stimulus, Greenback bulls rallied up, likely on broad risk sentiment and counter currency flows.

Traders were looking for safety in USD as second wave pandemic fears grew and the economic recovery seems to be fading, especially as we have yet to see the U.S. government put together another stimulus package for those hard hit by the global pandemic.

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:

Fed’s Kaplan, Wary of Bubbles, Dissented to Preserve Flexibility

The Chicago Fed National Activity Index (CFNAI) was +0.79 in August, down from +2.54 in July.

Fed’s Powell Says U.S. Economy Faces Long, Uncertain Recovery

CDC says it erroneously posted guidance that said coronavirus spreads through air and travels beyond 6 feet

The Dollar spiked higher on the session as traders rushed to safety  by a worsening situation with the pandemic, as well as a lack of fresh stimulus to combat the economic fallout and the rising odds of lockdowns.  This was pretty much the story for the rest of the week, prompting small bursts higher in USD with every negative pandemic/headline from around the world.

Tuesday:

Fed’s Bullard Says U.S. Has Already Delivered Enough Fiscal Aid

Powell pledges the Fed’s economic aid ‘for as long as it takes’

U.S. Existing-Home Sales Hit Highest Level Since December 2006

Richmond Fed Manufacturing Index inches higher to 21 in September vs. 18 in August

Philly Fed non-manufacturing index rose from 17.9 in August to 20.4 in September

Fed’s Barkin says recent labor market improvements will slow

Powell and Mnuchin voice optimism but back more economic aid

Wednesday:

House passes spending bill to avoid government shutdown, sends it to Senate

IHS Markit Flash U.S. Composite PMI: Solid rise in private sector business activity in September

FHFA House Price Index Up 1.0 Percent in July; Up 6.5 Percent from Last Year

Fed’s Clarida Says Months of 2% Inflation Needed for Liftoff

Fed’s Mester says more stimulus needed to support fragile recovery

Fed’s Quarles sees long recovery, says he’ll be ‘more patient’ on inflation

Fed’s Evans says he expects 2% inflation by 2023, but no rate hikes

Powell Grilled by Congress on How Fed Is Helping Main Street

FDA considering authorization rules that could push coronavirus vaccine past Election Day

Thursday:

U.S. Weekly jobless claims rise unexpectedly, total 870,000

U.S. new home sales rise to near 14-year high

Fed’s Bullard sees potential for ‘sort of” full recovery by year-end

Fed’s Evans says U.S. taking unnecessary risks with lack of more fiscal aid

Rebound of Manufacturing Activity in Central U.S. Slows in September — Kansas City Fed

Fed’s Williams says structural inequality stifles economic growth

Johnson & Johnson enters late-stage trial testing its coronavirus vaccine

Friday:

U.S. core capital goods orders beat expectations; business investment rebounding

House Democrats prepare new $2.4 trillion stimulus plan with unemployment aid, direct payments