USD deepens its losses to its lowest level in 7 weeks

Mohammed Abdelkhalik
October 21, 2020

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U.S Dollar Index – Weekly Outlook

USD fell in the European market on Wednesday against most of the world currencies, to deepen its losses for the fourth consecutive day, reaching the lowest level in seven weeks, due to the evaporation of demand for the US currency as the best alternative investment, after progress in political talks about the new fiscal stimulus package in the United States.

The USD index fell by 0.4% to 92.68 points, the lowest level since September 3, from today’s opening level at 93.04 points, and recorded the highest level at 93.07 points.

The USD index ended yesterday’s trading, down by 0.4%, in its third consecutive daily loss, after positive developments regarding the approval of new fiscal stimulus in the United States.

usd index

USD index falls after fiscal stimulus news

The Representatives US House spokesman, “Drew Hamill,” said “Nancy Pelosi” and Steve Mnuchi ”Treasury Secretary” continued to narrow differences over the fiscal stimulus program through a phone conversation on Monday.

After Tuesday’s talks, White House chief of staff Mark Meadows said there had been good progress on the economic aid program, but that there were still some negotiations before a final deal was reached.

For his part, US President “Donald Trump” said he was ready to accept a large financial aid bill, despite the opposition of his Republican party.

At the same time, investors are closely following the flow of corporate business results. Among the most prominent recent issues are Netflix, Snapchat, and some US banks.

With regard to the Corona crisis, the number of infections worldwide exceeded the barrier of forty million cases, and one of the volunteers to receive the “AstraZeneca / Oxford University” vaccine died of serious symptoms after receiving the vaccine.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.