U.S Dollar under Pressure, Currency Traders await U.S Job data

At about 10.40 am GMT the U.S dollar index which tracks the American dollar against a bouquet six other major currencies fell by 0.1% at 96.252, dropping over 1% over the last week.

Currency traders are looking through massive US data report suggesting that mid-June was fantastic in the high-frequency metrics, and things might fall short from the present due to Covid-19 onslaught particularly as global investors envisage further stimulus packages

Specifically, the American dollar seems to be losing strong support in the short term on carryover buying, as comments made by regional Fed Presidents, cautioned that the U.S economy may be at its peak

We could see a further weakening of the greenback near time, with the dollar turning lower overnight, meaning that the U.S dollar index might break strong support levels of 96 in the near term as the primary motivator for such downside remains to economic uncertainty strengthened by the COVID-19 pandemic

“Investors are growing more confident that this stock market rally is not going to end any time soon, “said Edward Moya, senior market analyst, at OANDA in New York. “And that’s pretty much based on expectations that you’re going to continue to see a strong global stimulus response over the coming weeks and months.”

Lingering worries about the surge in COVID-19 caseloads could help some emerged market currencies like the Euro to remain at a tight range, as the American dollar’s losses gradually increase currency traders’ bias, in favoring risky bets on the long-term economic growth.

Bearing this in mind, currency traders and investors will focus will turn their attention to the unemployment data scheduled to be out in few hours from now. have now been forced to slow down or reverse reopening.