The US Dollar were Weakening Against Other Currencies on Tuesday's Asian Market
The US dollar weakened against other currencies in Asian market trade on
Tuesday. This happens after the previous increase rally after signing the
fiscal policy stimulus in addition to additional pandemic aid funds by
President Trump and also the US–China trade talks plan this weekend. As already
preached yesterday, President Trump decided to take a shortcut by issuing a
policy after more than 2 weeks the U.S. Congress has not yet reached any
agreement on the additional stimulus.
For the direct relief fund which worth $400/week, US President - Trump
also promises to remove income tax. It is still a question if President Trump's
plan to use the emergency funds of the FEMA to be given as the grant or not.
FEMA is a natural disaster management agency in the US. So, changing the
emergency funds for the benefit of the workforce makes this not easy because
with considerable expenditures and revenues diminishing due to tax elimination
will make the balance sheet unbalanced and also threaten economic and social
stability. But if the US Congress immediately finds funding agreements from
federal funds, then the worries can be forgotten.
In addition, U.S.-China trade tensions continued to increase after the
U.S. not only block WeChat and TikTok application companies, but also include a
list Chinese and Hong Kong officials blocked number. In response, China also
issued a block list of 11 important officials including two U.S. Senate
members. This weekend, the US and China are scheduled to continue trade
negotiations. The U.S.'s economic fundamental data is still enduring,
especially in the labour sector after the release of Non-Farm Payroll data last
weekend. Today, there is no important data to be released, except the PPI data.
There is new data that will be released tomorrow, which is the CPI inflation
Meanwhile, the Euro remained depressed against the dollar despite the
relative economic data which is still positive and the handling of the Covid-19
pandemic which is more restrained than in the US. These two things give hope of
the economic recovery process in this region to be more optimistic. Worries may
exist due to external factors, especially economic recovery in the United
States will result in the demand of the world. Today, consumer sentiment data
from ZEW for Germany and Europe will be released.
Sterling is also relatively stable against the dollar. This happens amid
the upcoming UK Labour sector report which will be released this afternoon.
This Data will give you an overview of the business and commercial access reopening
in post-employment sector condition amid pandemic. The BRC Retail Sales Data
released this morning are showing optimism with an increase of 4.3%. This is
better than the estimate of 2.5% and the previous period of 10.9%. In addition,
the market is also waiting and see pending reports of new GDP growth which will
be released tomorrow.