News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Futures have their own set of characteristics and appeal to different types of traders and investors for a variety of reasons. Get your free trading guide and learn to trade the markets with futures here. Download your guide today!https://t.co/72oKM0kLHL https://t.co/rH0da7fBrb
  • RT @ZabelinDimitri: Marx once wrote that “history repeats itself, first as tragedy, second as farce”. In a sadistically comical way, he may…
  • Further your forex knowledge and gain insights from our expert analyst @ @MartinSEssex and @DColman on EUR with our free Q4 market analysis guide, available for free today.https://t.co/YwV249fojQ #Dailyfxguides https://t.co/mTXkxBmwUj
  • US Dollar losing its appear demand picks up for major counterparts. Risk of larger setback as risk appetite stabilises. Get your weekly US Dollar forecast from @JMcQueenFX here: https://t.co/eA3ZKnp0Ml https://t.co/7aggYP5haa
  • Believe it or not, some stocks may actually be more attractive in a bear market. Learn more about Defensive stocks here:https://t.co/TMcbMALtbw https://t.co/FQFnd3SIkG
  • Further your forex knowledge and gain insights from our expert analysts @JohnKicklighter and @JStanleyFX on $USD with our free Q4 market analysis guide, available for free today. https://t.co/7G7pWntiyY #DailyFXGuides https://t.co/k803MjNfTC
  • Stocks looked poised to rally with risk sentiment generally strong and technical signposts supportive of higher levels. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/j0iidIkrfR https://t.co/Jki7lJcs0B
  • Volatility, volatility, volatility. It's talked about so often but how can a trader really incorporate this into their approach? Find out here: https://t.co/SVmeGHIP2P https://t.co/rRe35rW8Mh
  • Markets move in cycles, and stocks do too, with certain sectors carrying more attraction in various backdrops. Learn more here:https://t.co/HMyeIy09Wm https://t.co/K16BSqaRxw
  • Bitcoin broke above $60k earlier in the session to a fresh multi-month high on the renewed expectation that the SEC will approve a futures-based Bitcoin ETF very soon. Get your weekly #Bitcoin forecast from @nickcawley1 here: https://t.co/cq9KH6fdQB https://t.co/isXVY87GZq
US Dollar Firms on Solid PMI Data as Stimulus Hope Fades

US Dollar Firms on Solid PMI Data as Stimulus Hope Fades

Rich Dvorak, Analyst

USD PRICE OUTLOOK: US DOLLAR ADVANCES FOLLOWING MARKIT PMI DATA & STIMULUS REMARKS

  • US Dollar attempts to claw back lost ground and turn positive on the day following PMI data
  • An uptick in US Dollar strength looks most notable against the EUR, CAD, and AUD
  • A breakdown in fiscal stimulus negotiations could exacerbate USD buying pressure
Advertisement

The US Dollar is perking up during Friday trade shortly after the New York opening bell. An overall solid PMI report just released by IHS Markit looks like a potential driver of returning US Dollar strength. Although the manufacturing component slightly missed market consensus, it still improved sequentially, and business activity across the services sector showed a marked gain for October. This likely boosts US economic growth trajectory on the back of solid momentum headed into 4Q-2020.

IHS MARKIT PMI REPORT (OCT) - DAILYFX ECONOMIC CALENDAR

US Markit PMI Flash October 2020 Chart

Chart Source: DailyFX Economic Calendar

The Markit PMI report for October highlighted how business confidence increased notably for both manufacturing and service sectors. Although, optimism was said to stem from firms becoming “increasingly positive about prospects for the coming year amid hopes for renewed stimulus, COVID-19 containment measures gradually easing, and greater certainty for businesses and households after the presidential election.”

US DOLLAR INDEX PRICE CHART: 15-MINUTE TIME FRAME (22 OCT TO 23 OCT 2020)

US Dollar Index Price Chart

Chart by @RichDvorakFX created using TradingView

That said, the latest fiscal stimulus headlines from key US politicians seem to have poured cold water on expectations for a stimulus deal before the November 2020 election. White House economic advisor Larry Kudlow stated that “the ball is not moving much on stimulus relief” this morning, which is a less-hopeful tone than conveyed previously.

This likely stands as a larger driver of the US Dollar’s intraday advance off session lows, which could continue while odds of a comprehensive aid package passing congress before the election quickly dwindle. US Dollar perkiness this morning following the stimulus headlines and Markit PMI data looks most notable across EUR/USD, USD/CAD, and AUD/USD.

Keep Reading: US Dollar (USD) Presidential Election Performance May Prove Anything but Typical

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES