Forex Today: Deal or no deal? Dollar weakens ahead of fiscal stimulus’ update

FXStreet Team FXStreet

Here is what you need to know on Wednesday, October 21:

The dollar retained its sour tone, easing against most major rivals as investors were cautiously optimistic about a US stimulus package. Treasury Secretary Steven Mnuchin and House Speaker will give it another try in the next couple of hours and will likely shake the FX board.

The EUR and the CAD were the best performers against the greenback, although there were no specific catalysts for their intraday advances. The Pound remained stuck amid frozen Brexit trade talks, while the AUD was pressured by a dovish RBA, barely able to trim intraday losses against the dollar on the back of the better performance of equities.

The number of new coronavirus cases in Europe continues to increase. Spain is considering declaring the state of alarm, while UK´s PM Johnson said tougher restrictions would be imposed on the Greater Manchester region in northern England starting on Friday after the country reported 21,331 new coronavirus cases.

Wall Street closed with gains, although off its daily highs, as investors are waiting for fiscal stimulus updates. Government bond yields edged marginally higher.

The broad dollar’s weakness supported commodities. Gold neared $1,910.00 a troy ounce while WTI settled around $41.50 a barrel.

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