Dollar Gains Ground on Stimulus Hopes

Barbara Zigah

U.S. stimulus bill looks possible; Australian Q3 growth surpasses expectations.

USDThe US dollar edged away from a 2½ year trough during London trade on Wednesday as Forex traders gauge the likelihood of another stimulus package being approved in the US. It was reported yesterday that the Speaker of the House and the Treasury Secretary held a joint discussion regarding a stimulus package, with the hope that the COVID-19 relief measures, proposed at $908 billion, would be approved by the White House.

Market players will also be watching for the release of labor data today from the US. Earlier, Eurostat reported that the EU's unemployment rate had fallen to 8.4% from an upwardly revised 8.5% (from 8.3%), largely in line with analysts' expectations. In the US, ADP will be reporting its employment change numbers, and analysts are predicting an increase to 410,000 new jobs, up from 365,000.

In London trading as of 11:04 am, the EUR/USD was trading at $1.2051, down 0.1715%; the pair has ranged from a trough of $1.20451 to a high of $1.20881 in today's session. The GBP/USD was trading lower at $1.3355, a loss of 0.50% and off the session peak of $1.34221, while the low was recorded at $1.33377.

Aussie Q3 Growth Better than Expected

The Australian Bureau of Statistics released its report on Australia's 3rd quarter GDP, on an annualized basis as well as a quarterly basis. Economists had predicted an improvement in the year-on-year figures to -4.4% (from -6.3%) and in the quarter-on-quarter to 2.6% (from -7%). In both cases, the actual numbers were better than anticipated at -3.8% and 3.3%, respectively. That news helped to boost the Aussie dollar, with the AUD/USD trading at $0.7382, a gain of 0.0854%, off the session peak of $0.73937. The AUD/NZD was also higher at NZ$1.0451, up 0.1639%.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.