The US dollar index was flat on Friday as the market responded to President Trump’s positive coronavirus test and mixed payrolls data. Non Farm Payrolls came in lower than expected at 667k versus 850k, but the unemployment rate fell once again to 7.9% from last month’s 8.2%. Traders were hoping for more after ADP employment beat expectations earlier in the week.
The U.S. dollar was struggling to find support on the day after the news that President Trump and the First Lady had tested positive for the coronavirus. The news brought uncertainty to the market with two further election debates ahead, whilst there were also fears that other White House officials could test positive which could hamper stimulus talks.
Yesterday saw House Democrats vote for their $2.2 trillion stimulus package and this removed hopes that there would be a bipartisan deal that came closer to Republican’s $1.5 trillion plan. It has been suggested that the vote was engineered for Democrats to blame Trump for blocking a deal for working Americans.
The dollar index was threatening a fifth-straight day of losses which began with the revival of the stimulus talks. Investors are concerned about U.S. debt and government spending with the greenback seeing a strong rally as hopes for another round of stimulus evaporated.
The dollar index was rejected by key resistance at the 94.62 level which was the low in the mid-March selling. The price has since fallen back to the 93.82 level and another close beneath here could see the index test the 50-day moving average around 93.25. The Investing Cube team is currently available to assist all levels of traders with a Forex Trading Course or one-to-one coaching.
