Dollar index hovers near 32-month low as US stimulus negotiations continue

The dollar remains on the offer near multi-month lows against major currencies.
Congress leaders vow to reach the long-awaited stimulus deal this year.

Omkar Godbole FXStreet Contributor

The dollar index (DXY) consolidates near 32-month lows reached Tuesday as the US Congress doubles down on efforts to break the long-standing stimulus impasse.

The DXY, which gauges the greenback's value against majors, is currently trading near 90.48, having printed a low of 90.42 on Tuesday. That was the lowest level since April 2018.

Senate Democratic leader Chuck Schumer was out on the wires a few minutes ago, stating that lawmakers are still talking on the coronavirus relief package and more talks are likely tonight (Tuesday, Eastern time).

Early today, House of Representatives Speaker Nancy Pelosi, a Democrat, hosted Senate Majority Leader Mitch McConnell, a Republican, as well as Senate Democratic leader Chuck Schumer and House Republican leader Kevin McCarthy, at the 7:30 p.m. ET (0030 GMT) gathering for stimulus discussions.

The negotiations have gone far too long, leaving the US economy vulnerable to downside shocks from the resurgence of coronavirus. Even so, risk assets have managed to stay bid, keeping the dollar under pressure. Expectations for global recovery on potential vaccines have kept investors from selling risk.

However, if the fiscal impasse persists, the focus could shift to near-term economic risks, possibly leading to risk aversion and a bounce in the safe-haven greenback.

Congress leaders, however, have vowed to reach a stimulus deal this year, which could be attached to the government funding bill. Most investment banks expect the dollar to continue losing ground in 2021.

Technical levels

Dollar Index Spot

Overview
Today last price	90.48
Today Daily Change	-0.01
Today Daily Change %	-0.01
Today daily open	90.49

Trends
Daily SMA20	91.45
Daily SMA50	92.48
Daily SMA100	92.87
Daily SMA200	95.64

Levels
Previous Daily High	90.82
Previous Daily Low	90.42
Previous Weekly High	91.24
Previous Weekly Low	90.61
Previous Monthly High	94.31
Previous Monthly Low	91.5
Daily Fibonacci 38.2%	90.58
Daily Fibonacci 61.8%	90.67
Daily Pivot Point S1	90.33
Daily Pivot Point S2	90.18
Daily Pivot Point S3	89.94
Daily Pivot Point R1	90.73
Daily Pivot Point R2	90.97
Daily Pivot Point R3	91.13

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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