The dollar posted its biggest weekly decline in more than a decade on Friday, as the central bank, FOMC, conducted huge amounts of stimulus. Their intentions are very much dovish, leaving it open to being unlimited, to help the economy’s dealing with Convid19. Elsewhere, looking at CFTC data, speculators increased their net short dollar position in the latest week to $8.88 billion, from $8.27 billion the previous week. Understandably, with that huge shift in sentiment both needed on a technical side of things, but also down to the above-noted central bank action. One important thing to note this week, month/quarter-end. Given how large the price swing has been, we may have to expect a lot of activity with investors rebalancing their books for the month- and quarter-end. As a result, there could be exacerbated moves this week, some which may even not make total sense fundamentally or technically, On a positive note, late on Friday, reported that the largest economic stimulus package in U.S. history, being signed into law by Donald Trump. It equates to $2.2 trillion, which will deliver one-time direct payments of $1,200 to most taxpayers and substantially enhance unemployment benefits. The measure also creates a $500bn lending program for businesses, cities and states and a $367bn fund for small businesses. In terms of this week, there are big data points coming out of the United States, which will spark further USD volatility: ISM Manufacturing & Non-Manufacturing PMI’s Consumer Confidence ADP Employment Change Unemployment Claims NFP
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