US Dollar Finds Momentum
The US index closed above 93 for the second consecutive day on Monday. This comes after President Trump is looking to bypass congress in the hopes of extending the unemployment benefit relief package.
Initial suggestions are to revise the coronavirus aid from the previous $600 to $400 per week.
Further US-Sino tensions took their toll on the USDJPY pair. Sentiment shifted towards the US dollar as investors await a meeting between US and Chinese trade officials.
The review of the phase one trade deal will be a priority subject.
Oil prices remained steady as news of the aid package supported WTI above $42.
In addition, risk sentiment shifted from the start of the week as gold fell 0.33% on Monday. Profit-taking and the increased flare-up between America and China left the yellow metal with no support.
Eurozone Reacts to Improved US Data
EURUSD traded 0.32% lower yesterday as the euro takes a continued back seat to reactions regarding Friday’s Non-Farm Payrolls.
The US dollar outperformed the euro for a second day leaving the pair to fall under 1.18.
BoE Lifts Fears of QE
The pound recovered well from its dip last Friday. A gain of 0.12% overnight maintained its charge towards the 1.31 handle.
Sentiment towards sterling improved as the Bank of England provided a supportive attitude. Meanwhile, a Brexit trade deal by October looks more likely.
Mixed Fortunes for the US Indices
Optimism remains after Monday’s session saw the S&P500′s seventh straight day of gains. The advance left the S&P500 less than 1% away from a record high.
Meanwhile, the Nasdaq composite retreated 0.60% from challenges with technology stocks as tensions grow between America and China.