Forex Today: Sentiment remained sour, but dollar’s demand receded
|Here is what you need to know on Friday, September 25:
The dollar maintained its positive momentum throughout the first half of the day, extending its rally to fresh weekly highs against most major rivals, although demand for the greenback receded during US trading hours. Stubbornly high weekly unemployment claims in the US weighed on the greenback. Movements were limited amid a light macroeconomic calendar.
In the UK, Finance Minister Rishi Sunak unveiled an emergency jobs scheme, which will result in the government and firms top up wages of workers whose jobs were affected by the pandemic. The new Job Support Scheme will cover three-quarters of normal salaries for six months starting next November. The announcement is part of a wider plan to protect the economy over winter, according to Sunak.
In its final day of testimony, US Federal Reserve Chief Powell said that there is “downside risk to the economy if some form of support to households doesn't continue,” once again urging lawmakers to provide fiscal support.
Gold trimmed intraday losses but was unable to turn positive for the day. It finished the day around $1,865.00 a troy ounce. Crude oil prices recovered some ground, finding support in the better performance of Wall Street. WTI closed at $40.00 a barrel.
Bitcoin and Ethereum rebound strongly and are poised for further gains
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