The talk over COVID-19 stimulus rages on in Congress because the Buck continues to slip. At this hour, Senate Republicans are contemplating whethe
The talk over COVID-19 stimulus rages on in Congress because the Buck continues to slip. At this hour, Senate Republicans are contemplating whether or not or to not schedule a vote concerning $2000 particular person stimulus funds. The recent uncertainty comes on the heels of the Home of Representatives passing a brand new invoice upgrading $600 private funds to $2000.
All in all, the markets are flat because the stimulus saga continues to unfold. On the halfway level of the Wall Road session, the DJIA DOW (-11), S&P 500 SPX (+2), and NASDAQ (-40) are hovering close to scratch. By far, the massive loser right this moment has been the Buck. Greenback values are off throughout the majors, as evidenced by the USD Index falling about 0.5% on the session.
On the financial calendar, not a lot was scheduled for right this moment. Nevertheless, U.S. actual property bought some excellent news, with launch of the 20-city S&P/Case-Shiller Residence Worth Index (YoY, Oct.). The metric got here in at a shocking 7.9%, effectively above business projections (6.9%). So, whereas the variety of residence gross sales could also be lagging, costs are up huge. If the U.S. Federal Reserve is searching for proof of QE having boosted inflation, 14-year excessive U.S. residence costs are a superb place to begin.
For the Buck, there isn’t a lot excellent news on the horizon. Barring the FED turning hawkish in January, the USD is positioned to slide at the least by the primary half of 2021.
USD/CHF Plunges As Buck Continues To Fade
The USD/CHF has prolonged its shedding methods after a short bullish bounce final week. Charges are again at yearly lows as New Yr’s Day approaches.
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Backside Line: For the remainder of the week, I’ll be watching the 0.8800 big-round-number intently within the USD/CHF. If the Buck continues to stumble, a check of this space and an extended commerce setup might come to go.
Till elected, I’ll have purchase orders within the queue from 0.8807. With an preliminary cease loss at 0.8767, this commerce produces 40 pips on a normal 1:1 danger vs reward ratio.