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Dollar slightly Stronger on Tuesday, Reversing its Weakening From Previous Sessions

Dollar still tends to strengthen against other currencies that are triggered other than by worries about the second wave of pandemic. In addition, today is the last day of the second quarter and the first half year of fiscal books so the repatriation of the dollar. 3 states in the US that support 25% of U.S. economic activities are: California, Texas and Florida again ordered bars and restaurants along with the increasing of new patients infected with Covid-19. The hospital is flooded by patient and lacked facilities.

This made Washington and San Francisco delayed the re-opening business and commerce plans. Meanwhile, only New York is continuing the plan, as well as in Europe and Asia. In addition, the Federal Reserve re-conducts market operations by purchasing private corporate bonds. This pushes the stock index to rebound. The Fed's market operation was slightly reaping controversy because the chosen bonds were not a company that was affected directly from pandemic which need assistance the most. Economic Data released overnight is from the housing sector, and the amount is significant enough to increase by 44.3%, this figure is far above the approximate 18.9% and the previous period-21.8%. Tonight, important data which is Consumer Confidence and state manufacturing index of Chicago will be released. The testimonies from The Fed Chairman - Jerome Powell and the Minister of Finance - Steven Mnuchin is the same.

Euro is relatively stable against US dollar, with optimism surrounding the region's economic recovery with long-term EU programs. The program will disburse grants up to 2027 years and a fiscal stimulus is expected to be a tax return for entrepreneurs. In addition, economic data also improved with the, preliminary CPI in Germany that rose 0.6% which is twice as good as the estimated 0.3% and increasing from the previous period-0.1%. The same thing happened also in Spain.

Sterling continues to weaken against dollar, touching its lowest level in the last 1 months. This is in line with fears of British government's ability to fund the economic recovery, especially in infrastructure. In addition, there is also the ability of Prime Minister - Boris Johnson to settle trade negotiations with the European Union. After the EU opened the way to England a few weeks ago, so far, no concrete efforts were made.