United Kingdom

John McCrank

Dollar ends losing week lower on election and COVID aid concerns

23 Oct 2020

NEW YORK The dollar weakened slightly against a basket of major currencies on Friday amid uncertainty over a new round of stimulus ahead of the upcoming U.S. elections, with the greenback set to record a weekly decline of around 1%.

FOREX-Dollar headed for weekly loss amid election, stimulus uncertainty

23 Oct 2020

By John McCrank NEW YORK, Oct 23 The dollar eased against a basket of major currencies on Friday following the final U.S. presidential debate, with fading prospects for a coronavirus relief package before the Nov. 3 elections pulling the greenback toward a weekly decline. Republican President Donald Trump and Democratic challenger Joe Biden squared off on Friday in a less raucous debate than their previous meeting, but tensions were still high, with a focus on the handling of the COVID-19 pandemic and plenty of personal attacks thrown into the mix. "It was certainly more productive than the first one, but I don't think there was any meaningful shakeup in the outlook for the election," said Joe Manimbo, senior market analyst at Western Union Business Solutions. The market is looking at a potential Biden victory as setting the stage for a more robust post-election rescue package, which is reducing the demand for the safe-haven greenback, he added. The dollar index was last down 0.13%, bringing it nearly 1% lower for the week. Given the potential risk of a contested election result, the dollar is likely to be confined to the range it has been in for the last several weeks, Manimbo said. In Europe, business surveys in France and Germany showed the impact of the second wave of COVID-19 infections in the euro zone's two biggest economies, threatening to derail the bloc's nascent recovery. Despite the data, the euro edged higher 0.2% against the greenback to $1.1844. "The PMIs weren't good, but they weren't as bad as expected, and that's the important point," said Marshall Gittler, head of investment research at BDSwiss Group. "Furthermore, stock prices are being boosted by some good earnings reports from Daimler, Barclays and others, and that's encouraging a 'risk-on' mood in FX too," he added. The euro also firmed after Reuters reported that France was laying the groundwork for a fisheries compromise to help the European Union strike a Brexit deal with Britain. Sterling also gained on the report, before easing back to 1.3065, down 0.12% against the dollar. The safe-haven yen dipped 0.15% to 104.76 per dollar following comments on Thursday by U.S. House of Representatives Speaker Nancy Pelosi that stimulus talks had made progress. The Chinese yuan ticked down 0.11% against the dollar after an official at China's foreign exchange regulator said it has been more stable than expected, suggesting authorities are not too worried about its recent rise. The yuan has gained about 7.5% since the end of May as China led the global coronavirus recovery. ======================================================== Currency bid prices at 9:52AM (1352 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar $1.1840 $1.1819 +0.18% +5.62% +1.1860 +1.1787 Dollar/Yen 104.7600 104.9250 -0.15% -3.54% +104.9300 +104.5800 Euro/Yen 124.03 123.93 +0.08% +1.71% +124.2100 +123.4200 Dollar/Swiss 0.9049 0.9072 -0.25% -6.49% +0.9092 +0.9035 Sterling/Dollar 1.3065 1.3083 -0.12% -1.48% +1.3121 +1.3051 Dollar/Canadian 1.3136 1.3139 -0.02% +1.12% +1.3157 +1.3110 Aussie/Dollar 0.7117 0.7118 +0.01% +1.45% +0.7158 +0.7103 Euro/Swiss 1.0712 1.0720 -0.07% -1.29% +1.0726 +1.0703 Euro/Sterling 0.9061 0.9027 +0.38% +7.18% +0.9074 +0.9022 NZ 0.6676 0.6675 +0.00% -0.80% +0.6704 +0.6657 Dollar/Dollar Dollar/Norway 9.2415 9.2585 -0.10% +5.44% +9.2935 +9.2045 Euro/Norway 10.9410 10.9329 +0.07% +11.21% +10.9675 +10.9042 Dollar/Sweden 8.7567 8.7509 +0.04% -6.32% +8.7933 +8.7345 Euro/Sweden 10.3690 10.3651 +0.04% -0.96% +10.3825 +10.3519 (Reporting by John McCrank; editing by Jonathan Oatis)

Dollar eases off 7-week low as COVID-19 aid bill in doubt

22 Oct 2020

NEW YORK The dollar index ticked higher on Thursday, easing off a seven-week low as hopes for a coronavirus aid package ahead of the U.S. elections faded and COVID-19 cases surged around the world, giving a slight bid to safe-haven assets like the greenback.

FOREX-Dollar edges off of 7-week lows amid stimulus uncertainty

22 Oct 2020

By John McCrank NEW YORK, Oct 22 The dollar index edged higher on Thursday, backing off of a seven-week low as hopes for a coronavirus relief package ahead of the Nov. 3 U.S. elections faded and COVID-19 cases surged around the world, boosting demand for safe-haven assets like the greenback. Investors were also digesting new U.S. jobless claims data that showed a bigger-than-expected drop, but remained at extremely high levels, indicating a slowdown in the labor market and broader economic recovery from the coronavirus pandemic as the boost from previous fiscal stimulus fades. Negotiations toward a new coronavirus aid bill were thrown into question after Republican President Donald Trump took to Twitter late on Wednesday to accuse Democrats of being unwilling to find an acceptable compromise and amid deep opposition among Senate Republicans to a large new stimulus package. But U.S. House of Representatives Speaker Nancy Pelosi on Thursday said negotiators were making progress and that legislation could be hammered out "pretty soon." "All this back-and-forth between Pelosi and the White House may not actually yield anything because at the end of the day, it seems like they are running out of time," said Kathy Lien, managing director at BK Asset Management. "The near possibility that we're going to get more bad news or at least no good news from now to the election is driving investors out of the greenback," she said. The stimulus package is likely to come up when Trump faces off against Democratic rival Joe Biden later on Thursday in their final debate ahead of the elections. News that Europe has seen the number of coronavirus cases surge to a record high, with Spain becoming the first Western European country to exceed 1 million infections, added to the cautious tone in world markets. This backdrop appeared to favor the dollar, which had fallen for the last three days against a basket of other major currencies. The dollar index was last trading at 92.893, 0.18% firmer on the day and above the 92.469 low hit on Wednesday that marked the lowest level since Sept. 2. The euro was 0.3% lower versus the dollar at $1.1862, down from Wednesday's one-month highs of $1.18805. "The euro has been undeservingly strong, given the significant increases in COVID-19 cases and the fact that the ECB will have no choice but to lower interest rates," said Lien. She said she will be closely watching PMI reports from the euro zone due out on Friday, which could trigger a more aggressive decline in the euro. The tone in currency markets was generally subdued as investors waited for new impetus. "The U.S. presidential elections are only 12 days away, before that nobody wants to commit too much to a particular direction in euro/dollar," said Commerzbank FX analyst Esther Reichelt. Having hit six-week highs on Wednesday amid Brexit optimism, sterling too pulled back against the U.S. currency. The British pound was last down 0.35% at $1.3103. The Australian dollar was 0.1% softer versus the greenback at $0.7110, while the New Zealand dollar was 0.21% higher at $0.6670 - up from the $0.6551 low touched on Tuesday. Elsewhere, the Chinese yuan retreated from a 27-month high hit a day earlier on signs the authorities have become increasingly wary over the recent rapid gains in the currency. The offshore Chinese yuan was last up 0.42% at 6.6709 per dollar. ======================================================== Currency bid prices at 9:48AM (1348 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar $1.1826 $1.1862 -0.30% +5.49% +1.1867 +1.1812 Dollar/Yen 104.6900 104.5700 +0.11% -3.61% +104.7750 +104.5500 Euro/Yen 123.79 124.02 -0.19% +1.51% +124.0900 +123.6700 Dollar/Swiss 0.9070 0.9053 +0.19% -6.27% +0.9080 +0.9051 Sterling/Dollar 1.3103 1.3147 -0.35% -1.22% +1.3152 +1.3083 Dollar/Canadian 1.3150 1.3144 +0.05% +1.23% +1.3177 +1.3133 Aussie/Dollar 0.7110 0.7117 -0.10% +1.33% +0.7119 +0.7085 Euro/Swiss 1.0726 1.0737 -0.10% -1.16% +1.0748 +1.0721 Euro/Sterling 0.9022 0.9018 +0.04% +6.72% +0.9046 +0.9015 NZ 0.6670 0.6655 +0.21% -0.89% +0.6675 +0.6634 Dollar/Dollar Dollar/Norway 9.2290 9.2075 +0.26% +5.23% +9.2600 +9.2020 Euro/Norway 10.9150 10.9390 -0.22% +10.95% +10.9660 +10.9060 Dollar/Sweden 8.7655 8.7254 +0.15% -6.23% +8.7854 +8.7220 Euro/Sweden 10.3657 10.3503 +0.15% -0.99% +10.3959 +10.3485 (Reporting by John McCrank; additional reporting by Dhara Ranasinghe in London; editing by Jonathan Oatis)

Dollar index hits seven-week low with COVID stimulus in focus

21 Oct 2020

NEW YORK The dollar hit a seven-week low against a basket of currencies on Wednesday after U.S. President Donald Trump and House Speaker Nancy Pelosi boosted hopes for a large fiscal stimulus package, prompting some traders to ramp up bets on riskier currencies.

Nasdaq quarterly profit tops estimates as indexes shine

21 Oct 2020

Nasdaq Inc on Wednesday reported third-quarter profits that topped Wall Street views, helped by strength in the transatlantic exchange operator's indexing business and a surge in trading volumes.

Dollar softens ahead of U.S. election with stimulus in focus

20 Oct 2020

NEW YORK The U.S. dollar dipped on Tuesday, hitting a one-month low against a basket of major currencies, as investors awaited the outcome of fiscal stimulus talks ahead of the upcoming U.S. presidential election and coronavirus cases spiked in Europe.

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