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.
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.
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Every day, I will present to you my findings and daily commentaries on what recently happened in the economic arena, possible shifts in sentiment, economic events to watch out for, and their effects on currencies.