Why Are All Currencies Rising Again?

 The US dollar depreciated lower as markets entered weekend trading following confidence in the resumption of US stimulus support sentiment and risky currencies.

Negotiations on a new fiscal stimulus package between U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin resumed, two days after President Donald Trump ended it.

However, relatively limited developments limited the movement of major currencies to record a modest increase, while the dollar index declined by 0.1% against a basket of major currencies.

The positive outlook for stimulus measures to support the recovery of the world's backward economy has burdened USD trading by boosting investor sentiment and encouraging them to acquire risky assets such as stocks and commodities.

Investors are also increasing the likelihood that Joe Biden will win the presidential election and this will allow the stimulus to be passed, as this larger spending package is proposed by Democrats.

The total number of US unemployment claims seems to be still increasing after data showed as many as 840,000 claims were made last week.

The Aussie dollar traded higher during the Asian session after being frustrated by the prospect that the Reserve Bank of Australia (RBA) would implement more monetary easing in the future.

The New Zealand dollar once again erased losses recorded after the Reserve Bank of New Zealand (RBNZ) issued another dovish statement on negative interest rates.

Meanwhile, the pound traded stable stable supported by the prospect of a rising Brexit trade deal after Britain stated there was a 66% chance of success in reaching a deal.

The euro traded also up during the Asian session today, following the downturn in the US dollar.