The US dollar fell against a basket of currencies today as risk appetite on the market limited demand for safety provided by the greenback, while the outlook for stimulus in the United States further damaged the appeal of the US currency.
Macroeconomic indicators were suggesting lately that the economy recovers across the world, be it Asia, Europe, or America. They showed that the global economy remained stable despite the second wave of the COVID-19 pandemic. Coupled with positive news about the coronavirus vaccine development, that made investors optimistic and more willing to risk. The dollar, being a safe currency, suffered as a result.
A bipartisan group of US lawmakers proposed a $908 billion coronavirus relief bill. It should help businesses, unemployed people, and others that have suffered from the COVID-19 pandemic. While the bill has not yet been signed into legislation, it added to the positive mood of traders. If Congress approves it, the dollar will likely fall even further.
There will be plenty of economic reports released in the United States during the rest of the week but market participants focus mostly on nonfarm payrolls released on Friday. Economists expect that the report will show an increase of employment by 500k in November, down from 638k in October. The unemployment rate is expected to fall a bit from 6.9% to 6.8%, while wage inflation should remain unchanged at 0.1%.
EUR/USD climbed from 1.1926 to 1.2049 as of 18:28 GMT today. NZD/USD gained from 0.7010 to 0.7059. USD/CAD dropped from 1.2997 to 1.2949.
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