​USD May Fall on Renewed Fiscal Stimulus Hopes

WikiFX News (3 Dec.) - The lower-than-expected employment in November, as released by the Automatic Data Processing (ADP) on Wednesday, dragged the DXY below the 91 barrier, down by 0.22%. The US dollar is expected to stay weak amid the Fed's dovish policies and renewed fiscal stimulus hopes.

The ADP revealed on Wednesday that employment in the US increased by 307,000 in November, missing the market expectation of 410,000. The DXY declined to 91.1153 in reaction to this reading. The lower-than-expected employment may stem from the spike in Covid-19 infections and business restrictions.

The Fed Chair Jerome Powell said an end to the lending programs established to provide economic support was only possible when the time came.

House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer called for immediate talks on the stimulus plan. Meanwhile, Republican Mnuchin and the nominee of new Treasury secretary Yellen urged Congress to appropriate $300 billion for the Paycheck Protection Program. As a result, more downside pressures are waiting ahead of the dollar.

The DXY looks poised to deepen its loss after collapsing through key support at the September low. Alternatively, clearing the primary support at 91.0 could carve a path to test the barrier of 90.00.

All the above is provided by WikiFX, a platform world-renowned for forex information. For details, please download the WikiFX App: bit.ly/wikifxIN

Chart: The DXY Trend