- DXY eases amid fears of further delays in the US aid package.
- US President Donald Trump calls covid relief bill unsuitable, demands Congress add stimulus.
- US-China tussle intensifies, Brexit, virus woes continue to weigh on risks.
- US data can offer an extra burden on the greenback watchers.
US dollar index (DXY) drops to 90.60, down 0.05%, during early Wednesday. The greenback gauge recently reacted to US President Donald Trump’s obstruction to the coronavirus (COVID-19) aid package and government funding already passed by Congress. On Tuesday, the DXY surged the most since late August amid a risk-off mood.
In his tweet, US President Trump terms the $900 billion covid aid package as “unsuitable ‘disgrace’ and urged lawmakers to make a number of changes to the measure, including bigger direct payments to individuals and families,” said CNBC.
On the other hand, the US Homeland Security Department issued a warning over the use of data linked from Chinese companies. Axios said, “to warn US companies of the risk of Chinese government-sponsored data theft that can occur through US business partnerships with Chinese companies, or through the use of their products and services.”
Other than fading chances of an early US stimulus, chatters over more stringent activity restrictions in the UK, due to the coronavirus (COVID-19) and the virus variant, joins the Brexit woes and US President Donald Trump’s pardoning of 15 people, also weigh on risks.
Amid these plays, S&P 500 Futures drop half a percent while stocks in Asia-Pacific also mark losses amid a broad risk aversion wave.
Looking forward, US data concerning Durable Goods Orders, Michigan Consumer Sentiment and Weekly Jobless Claims can offer intermediate clues but risk catalysts will remain as the key.
Technical analysis
Unless declining back below the previous resistance line from November 04, at 90.25 now, DXY bulls can keep the reins.
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