The US dollar is marginally lower amid a clash between the US Treasury and the Federal Reserve over stimulus funds. Coronavirus fears and vaccine news are moving markets as well. Brexit developments are eyed.
The US hit a new daily high of 185,000 infections on Thursday, with hospitalizations and mortalities also hitting peak levels. Cases remain elevated in Germany and are edging lower in France.
The safe-haven dollar has pared some of its gains triggered by a rare public spat between America’s top economic institutions. Treasury Secretary Steven Mnuchin demand $580 billion in unused funds to be returned from the Federal Reserve. The bank’s response was that the money is used as an emergency lending facility. It is unclear what the Treasury wants to do with the funds, but the out-in-the-open fight weighed on markets.
USD/JPY gained some traction amid optimism over the resumption of US fiscal aid talks. EUR/USD dropped to 1.1870, while GBP/USD was down near the lows for the day close to 1.3250.
Oil was up on Friday morning despite conflicting U.S. stimulus reports, an apparent schism in OPEC, and the ever-rising COVID-19 numbers. Gold was also up on Friday morning as the U.S. sent out contrary COVID-19 relief signals.
The data calendar today is light, and the focus would be on the German Bundesbank President Weidmann’s speech, due at 13:00 GMT.
US Dollar Halt Its Slide Amid Treasury-Fed Feud
Published on 2020-11-20 08:42
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