FXTM information and reviews
FXTM
93%
OctaFX information and reviews
OctaFX
91%
FXCC information and reviews
FXCC
90%
Libertex information and reviews
Libertex
89%
FxPro information and reviews
FxPro
88%
HotForex information and reviews
HotForex
87%

New support hopes eased market fears and halted USD uptick


25 September 2020

Discussions around a new $2.2 trillion relief package in the US kept markets afloat on Thursday and are helping to build positive momentum at Asian bourses on Friday morning. Previously, the deadlock in negotiations between Democrats and Republicans was an important pressure factor on stock prices and returned demand for the dollar, which has risen 3.2% since early September against the basket of major currencies.

The steady fall in key US indices, as well as the increase of the dollar earlier this month, reversed the trends that prevailed in markets from March to the end of August. On the tech analysis side, we recently received a signal that the dollar is likely to continue its growth and that the stock market is expected to decline.

However, a renewed hope for support packages from the US government could prevail over any technical picture or alter its interpretation.

Recently, they have proven to be net sellers, capturing profits from previous growth and paying attention to the fading recovery.

The main burden of securities purchases in recent weeks has been placed on the shoulders of retail investors, which very often occurs near the market’s peak. This risks being even more intense amid an alarming weak recovery in the US labour market.

Claims for unemployment benefits were again disappointing, with more than 12.5 million people receiving benefits. Without the Federal Supplementary Benefit Scheme, this is leading to a drop in income. Households will have to consume the safety cushion that was formed during the generous government payments in previous months.

But progress in the discussion of relief packages could bring professional managers and funds back to the list of stock buyers.

Some of this money seems to have supported the rally in the markets. The new support packages, if as generous as they were earlier this year, could breathe new life into the stock markets, as some speculators will try to overtake the wave of stock purchases before the actual interest in them from individuals.

Simply put, further news about the promotion of the support package in the US could reverse the downward correction in the stock market, putting it back on the path of growth and thus causing pressure on the dollar.

#source

Share:


Related

US Dollar Index adds to recent losses and retests 95.40 ahead of data
US Dollar Index adds to recent losses and retests 95.40 ahead of data

DXY extends the decline to the 95.40 region on Thursday. US yields correct further lower from recent tops. Initial Claims, the Philly Fed Index are next in the US docket...

21 Jan 2022

EURUSD decided to wait
EURUSD decided to wait

EURUSD stopped growing; the statistics failed the "greenback". The major currency pair is rather neutral early in the week. The current quote for the instrument is 1.1426...

17 Jan 2022

The Euro skyrocketed to its 8-week highs
The Euro skyrocketed to its 8-week highs

EURUSD continued rising after the US reported on inflation. The major currency pair continues growing on Thursday. The current quote for the instrument is 1.1468...

14 Jan 2022

US Dollar Index appears supported near 95.50
US Dollar Index appears supported near 95.50

DXY looks depressed around the mid-95.00s midweek. US 10y yields remain capped by the 1.80% area. Inflation figures tracked by the CPI next of note in the docket...

12 Jan 2022

EUR/USD Keep Falling
EUR/USD Keep Falling

The major currency pair is falling after demonstrating some growth last week. The asset is mostly trading at 1.1330. Market players are still processing the FOMC Meeting...

11 Jan 2022

Hot inflation in eurozone could rescue the euro from strong NFP
Hot inflation in eurozone could rescue the euro from strong NFP

EUR/USD seems to have steadied around 1.1300 ahead of key data releases. According to FXStreet’s Eren Sengezer, the shared currency could find demand on a hot inflation report...

7 Jan 2022


XM information and reviews
XM
86%
FXCM information and reviews
FXCM
85%
AvaTrade information and reviews
AvaTrade
84%
LegacyFX information and reviews
LegacyFX
83%
FP Markets information and reviews
FP Markets
82%
Pepperstone information and reviews
Pepperstone
82%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.