Friday, February 3, 2023

Dollar Down Ahead of Chinese Quarterly Growth Data Release By


© Reuters.

By Gina Lee – The dollar was down on Monday morning in Asia, with China due to release quarterly growth data, including and readings, later in the day, despite fading hopes for the latest fiscal stimulus package to be passed by the U.S. Congress ahead of the Nov. 3 U.S. presidential elections.

The that tracks the greenback against a basket of other currencies inched down 0.04% to 93.672 by 9:40 PM ET (1:40 AM GMT), following a 0.7% rise the previous week over surging numbers of COVID-19 cases and the impasse in Congress.

The pair inched up 0.01% to 105.41.

The pair gained 0.36% to 0.7106. The pair was up 0.32% to 0.6625, after the NZD showed little reaction to Prime Minister Jacinda Arden’s Labor party cinching a landslide victory on Saturday.

The risk-sensitive Antipodean currencies saw gains over expectations that the Chinese data will show strong growth for the quarter. Investors are hoping that a strong recovery in the world’s second largest economy will strengthen demand amid rising COVID-19 cases and the re-introduction of restrictive measures such as lockdowns.

Although the People’s Bank of China introduced policies to stem the yuan’s recent rise during the previous week, the expectations have boosted the currency over its 18-month high of 6.6788. The pair edged down 0.12% to 6.6883.

The pair edged up 0.20% to 1.2938.

In the U.S., despite House of Representatives Speaker Nancy Pelosi setting a Tuesday deadline for Congress to reach consensus on a deal before the election, most investors remain doubtful that the deadline will be reached as a Joe Biden victory looks imminent. 

“Fiscal remains the buzzword … but forget the Republicans’ move to pass a $500 billion bill, it will not see the light of day, and expectations of a new stimulus bill have been pushed into 2021,” Pepperstone head of research Chris Weston told Reuters. With around two weeks left until Nov. 3, national polls show Democrat candidate Biden leading incumbent President Donald Trump by around ten points. The two men will square off at a final debate scheduled for Thursday.

“Markets will be attentive to any potential shift in polls, although traditionally the last debate has less impact in public opinion … the main risk for markets now would be a tightening in polls, which would reduce the likelihood of a large Democratic fiscal stimulus package and could raise the likelihood of a long-contested election,” Barclays (LON:) analysts said in a note.

Meanwhile, Pelosi and Treasury Secretary Steven Mnuchin discussed stimulus package efforts via a phone call on Saturday and are due to speak again later in the day. Trump has also renewed his offer to up the package’s price tag.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Please enter your comment!
Please enter your name here



Related Stories