Forex

Dollar Goes Up in Hopes of Stimulus Package

Dollar Goes Up in Hopes of Stimulus Package

On Tuesday, the US dollar bounced back above a two year low as the Federal Reserve is in talks for another US fiscal, economic rescue package to aid the nation in recovering from COVID pandemic. 

At around 07:10 GMT, the Dollar Index, which measures the performance of the greenback against six primary currencies, surged 0.2% trading at 93.810. USD/JPY also traded 0.2% higher 105.58, the British pound was also weak against the greenback and traded 0.1% down at 1.2868.

The gains were in response to the Republicans unveiling the $1 trillion economic recovery package and ahead of the federal meeting, which is scheduled to start on Tuesday later. US Congress’s Friday deadline is also very near to extend the unemployment benefits, and all these are enough for investors and traders to look for safe investments.

Meanwhile, the EUR/USD traded 0.2% lower at 1.17. 

Jobs recovery is such thing which Federal Reserve will surely discuss in the two days meet as, despite positive financial recovery numbers, US is encountering a surge in COVID cases in many populated states which has halted the US jobs recovery programs. 

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