Home Forex News No Consensus by Lawmakers on U.S Fiscal Package—Dollar Takes A Hit

No Consensus by Lawmakers on U.S Fiscal Package—Dollar Takes A Hit

As U.S lawmakers, the Republicans and the Democrats fail to reach a consensus on the way forward for an economic stimulus package, the dollar recorded losses against the major currencies.

On the other hand, European Union leaders have finally got their act together. Spearheaded by German Chancellor Angela Markel and Emmanuel Macron, President of France, the EU leaders have agreed to a 750 billion Euro stimulus package for the coronavirus hit economies. As a result, the Euro went at its highest level in more than a year as the dollar wobbled on the uncertainties in the U.S.

Shane Oliver, the chief economist at AMP Capital Investors in Sydney, explains,

Shane Oliver said

As a result, the greenback went at $1.2727 against the British pound. It has fallen to 0.9323 for the Swiss franc, again a four-month low. AUD rose to $0.7144, the highest since April, while NZD closed at $0.6649, the highest since January. However, it has been intent at 106.79 on the yen.

The deadlock by the U.S lawmakers is not new. The House of Representatives had, two months ago, proposed a $3T relief package, which was ignored by the Republican-controlled Senate. Now, the Republicans are considering a $1 trillion package which the Democrats led by House Speaker Nancy Pelosi say is grossly inadequate.

Even as late as yesterday, there has been no clear understanding between the Republicans and the Democrats on the quantum of COVID-19 relief, especially for extending unemployment insurance to those retrenched during the ongoing pandemic.

There is hope that the dollar might soon get out of the trench it is in now. Investors are optimistic about U.S. home sales and jobless declarations.

Timmy Murphy
Timmy Murphy
Timmy is a crypto and finance analyst. He deals with finance news-stories. He has completed his graduation in accounting and Finance. He is also a blogger and is famous for his finance blog. For any issues, feel free to contact him at email: timmy@forexnews.world

Must Read

No Consensus by Lawmakers on U.S Fiscal Package—Dollar Takes A Hit

As U.S lawmakers, the Republicans and the Democrats fail to reach a consensus on the way forward for an economic stimulus package, the dollar...

Pressure on the Dollar as Vaccine Hopes Rise High

The dollar came under sustained pressure as a fiscal package to rescue the economies in the European Union and the positive progress towards a...

Euro Hovers Near Four-Month High as Sectors Aims at the EU Summit

On Monday, the Euro climbed almost four months up from the dollar. As the investors, expected the European leaders crack the deadlock, and ink...

What to Expect from Australia’s July 2020 Reserve Bank & Treasury Meeting

The upcoming week would be big in announcements from Australia’s monetary and banking authorities. New updates on fiscal policies would be out, shaping up...

Hopes of a New Vaccine Pushes the Dollar to a One-Month Low

On Wednesday, the currency markets saw a revival of the risk sentiment as the steady progress towards the COVID-19 vaccine helped to strengthen the...