The US dollar index was still trading at a 2 1/2 year low on Monday as weak US employment data led to an increase in expectations of economic stimulus assistance. On the other hand the sterling currency continued to weaken due to concerns over trade agreements between Britain and the European Union.
Last Friday, NFP employment data only recorded an increase of 245,000 last month and it is the lowest increase since May. This reading indicates that job recovery is slowing down.
According to MUFG currency analyst Lee Hardman argues that the loss of momentum in the movement of the US dollar and the impact of Covid-19 on the labor market will increase pressure on Congress and the Fed to announce further stimulus. The Fed is expected to make changes to its stimulus program this month.
Therefore, although the US dollar is at a low level, the currency has continued to strengthen since the opening of the European session earlier. The US dollar index, which measures the greenback against the major, strengthened by 0.12% to the 90.805 exchange rate as of 9.40 p.m.
While awaiting further developments on vaccine issues and economic stimulus packages in the United States (US), the Brexit crisis was the first factor to shake the market earlier in the week. On the positive side, Britain is reported to be the first country to launch the Covid-19 vaccine developed by Pfizer Inc and BioNTech this week.
The pound depreciated against the US dollar by 1% to 1.3302 as of 9.45 p.m. The Euro strengthened against the US dollar by 0.10% to the exchange rate of 1.2132.
