On Friday, the dollar traded with losses and neared the 99.00 mark during the early hours. The US Dollar managed to attract some bids and entered the green zone however its further rise is up in the air as traders will focus on the vote in the US House of Representatives. If the new relief package is passed, the USD may lose ground again.
Markets still try to regain composure after yesterday’s US figures. The initial claims showed a drastic surge and came at 3,283K versus 282K previously. Such readings reflect the negative coronavirus impact that already dealt a severe blow to the US economy. Moreover, the report heightened traders’ concerns about a possible global recession. In response, the DXY pulled back from the mid-100.00 levels and witnessed a steep decline.
Meanwhile, the US coronavirus headlines are far from being positive. The number of cases in the States surpassed those in China and the situation is getting worse. More than 85,500 people were tested positive for the disease while the death toll reached 1,300. The news induces panic on the markets and shows that despite the cooperation governments are unable yet to take COVID-19 under control.
Today, the US House of Representatives will decide on the new $2 trillion stimulus package approved by the Senate on Thursday. The discussion is scheduled at 1300GMT. However, there were some speculations that the vote might be delayed into the weekend. House of Representatives Leader Nancy Pelosi urged all the members not to do anything that may impede the voting.
All in all, coronavirus and the politic situation in the US will remain the most relevant issues that set the market’s mood on the last trading day.
From the technical point of view, the DXY trades in the 99.60 region with small gains however its rally remains fragile. In the NA docket, the US will publish the PCE index that may influence the USD dynamics, however, coronavirus events will likely steal the show again. The resistance is at 100.55, 101.67 and 102.33 while the support is pegged at 98.77, 98.11 and 96.99.