- The dollar picks up a bid amid continued US election uncertainty.
- Asian traders ignore the Fed’s dovish talk, push DXY higher by over 0.20%.
The dollar index (DXY) advanced on Friday, ignoring the dovish tone of the Federal Reserve’s (Fed) policy statement released Thursday. The greenback drew bids as the US elections showed Democrat contender inching closer to the victory.
The DXY rose to 92.75, representing a 0.24% gain on the day, having declined by 0.94% on Thursday.
While the Fed kept interest rates at a record low and announced no new stimulus measures, it signaled a willingness to do more if needed to support an economy under threat from a worsening coronavirus pandemic.
“We understand the ways in which we can adjust the parameters of it to deliver more accommodation if it turns out to be appropriate,” Fed’s Chairman Powell said.
Even so, Asian desks put a bid under the greenback, possibly due to concerns that a split US Congress would not be able to deliver a big fiscal stimulus package. Markets had positioned for a Democratic sweep in elections and a big boost in spending while heading into the Nov. 3 elections.
Besides, the US stock futures fell, powering a bounce in the safe-haven dollar. possibly due to the uncertainty of an exceedingly close US presidential election, According to Reuters, the Trump campaign and Republicans turned to the courts to try to invalidate votes in Pennsylvania and block Michigan officials from counting ballots.
Technical levels
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