The US Dollar drifted lower as hopes were revived that a new stimulus package would soon be made available to US businesses and consumers which could help provide a lift to the flagging economy. Those hopes prompted FX traders to look to higher risk currencies. Currency strategists say that FX traders remain wary that the upcoming private sector jobs report will disappoint, and that until the stimulus package is a certainty, caution will continue to be exercised. Later today, the US Labor Department will be reporting on new non-farms jobs for September; analysts are forecasting the numbers to show a significant drop to 850,000 from 1,371,000 in August.
In Tokyo trading, as of 9:56 am, the AUD/USD was trading at $0.7167, up 0.1663% and off the session peak of $0.71930. The NZD/USD was also higher at $0.6639, a gain of 0.3129%; the pair has ranged from a low of $0.66364 to a peak of $0.66562 in today’s session. The USD/JPY was higher at 105.5430 Yen, up 0.11%.
Pound Pressured by Multiple Fronts
In the UK, the Pound Sterling continues to come under pressure as the risk of a no-Brexit deal outcome becomes more likely with each passing day. Also weighing on the currency is the escalation of those infected by the Covid-19 virus which is seeing a resurgence in the UK. The question as to what Boris Johnson will do to minimize the spread of the virus is also a factor in sentiment for the Pound Sterling. The GBP/USD was trading at $1.2875, a loss of 0.3159% and off the session peak of $1.28996. The EUR/GBP was higher at 0.9111 Pence, up 0.4332%.