The DOLLAR fell near a 2-1/2-year low on Tuesday as Congress pushed to strengthen the coronavirus rescue package and encourage investors to take on more risk.
The House of Representatives voted Monday to increase stimulus funding to eligible Americans from $600 to $2,000. The bill went to the Senate for a vote.
On Tuesday, Senate Majority Leader Mitch McConnell blocked Efforts by Senate Minority Leader Charles Schumer to seek unanimous passage of a bill that would increase direct payments for the coronavirus relief program to $2,000 by the end of the year.
Mr. McConnell introduced a bill late Tuesday that would tie the $2,000 corona-aid check to Mr. Trump’s requirements for legal protections for social media companies and electoral fraud. The bill would meet all of President Trump’s recent demands, which are unrelated but won’t get Democratic support.
By passing the bill, Republicans would avoid actually passing a $2,000 payment bill, but allow Republican senators to express support for Trump’s priorities in a runoff election in Georgia on January 5.
Mr. Schumer said in a statement on Tuesday that if Mr. McConnell “tries to insert unrelated partisan provisions into the bill that do nothing to help struggling families across the country,” “larger direct payments will not become law.”
“Any such move by Senator McConnell would be a blatant attempt to deprive the American people of a $2,000 survival check,” he said.
In the US general election, the Trump campaign has appealed to the Supreme Court over the election in the state of Wisconsin. The Trump campaign has asked the Supreme Court to review the appeal by January 6.
The DOLLAR index.DXY fell to close 0.34 percent lower at 90.00, having hit an intraday high of 90.34 and a low of 89.88.
“Optimism is widespread and usually comes from the stock market,” says Bart Wakabayashi, Tokyo branch manager at State Street Bank and Trust.
“The pace of the dollar is very heavy and will continue to be so into next year.”
The pound rose nearly 0.4 percent to end at 1.3502 on the U.S. dollar after two days of losses. The pair hit a high of 1.3625 this month, a level not seen since May 2018, but investors took profits after The UK confirmed its brexit trade deal last week.
Prime Minister Johnson has approved the introduction of a level FOUR vaccine restriction in more parts of the UK following growing concerns about the speed of the novel Coronavirus new strain. Millions of people will be required to comply with the home stay order from Wednesday. Ministers are considering the toughest measures to be introduced in parts of the south-west and Cumbria, and there are concerns about rising cases in the West Midlands. Hancock, the health secretary, will inform MPS on Wednesday which areas will be subject to a level four restriction.
Valeria Bednarik, analyst at financial website FXStreet, said the weaker dollar kept the pound trading around 1.35 today. Despite Britain’s trade agreement with the European Union to leave the BLOC, the pound lost momentum as investors reviewed the documents and found numerous issues unresolved. In addition, the latest outbreak in the UK, which saw its biggest ever rise in new cases today, has also limited the pound and the UK is considering stricter controls across the country.
Wakabayashi says: “People are still trying to figure out what the Brexit deal means. There hasn’t been any real consensus in the financial markets and that is a big negative for Britain.”
Trend analysis of major currencies:
Euro: Rose for the second day in a row, closing 0.32% higher at 1.2251. Technically, the initial resistance to the exchange rate upward is at 1.2279, further resistance is at 1.2311, and key resistance is at 1.2348. The initial support is at 1.2210, further support is at 1.2174, and more critical support is at 1.2142.
Sterling: GBP/USD turned higher, up 0.39% at 1.3502. On the technical front, the initial resistance to the upward movement of the exchange rate is at 1.3534, further resistance is at 1.3570, and key resistance is at 1.3618. The initial support is at 1.3450, further support is at 1.3403, and more critical support is at 1.3366.
Yen: The dollar fell against the yen for the first time in three days, ending down 0.24% at 103.52. Technically, the initial resistance to the exchange rate upward is at 103.77, further resistance is at 103.98, and key resistance is at 104.13. Initial support for the lower exchange rate is at 103.40, further support is at 103.24, and more critical support is at 103.03.