The drop of the US dollar index continues for the 3rd day in a row - 9.10.2020

Today, the US dollar index is declining for the 3rd day in a row. The main reason for it is investors' expectations of the Fed's money emission aimed at stimulating the American economy hit by the coronavirus. Recall that the Democrats have offered a $ 2.4 trillion aid package. US House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have resumed negotiations on the aid bailout. Thus, they ignored President Donald Trump's announcement to postpone this issue to the post-election period. Note that Donald Trump continues to receive Covid-19 treatment. He is likely to ditch his scheduled election debate this weekend with Democratic candidate Joe Biden. This significantly reduces Donald Trump's chances of winning the November 3rd presidential election. Today, the Chinese yuan continued to strengthen against the US dollar. USDCNH updated its 17-month low following the publication of the positive Caixin Services PMI for September.

On Thursday, US stocks rose for the second day in a row. Futures on them keep growing today. The expectation of funds for the US economy weakens the dollar, but at the same time strengthens stock prices. Decline in the number of unemployed for the week was an additional positive factor for the stock market. Amidst rising oil prices, S&P 500 energy index (+ 3.8%) led the growth. International Business Machines gained 6% after reporting it is spinning off its managed infrastructure business into a separate company. Today, European stock indices are growing despite a sharp increase in the number of coronavirus cases in Spain, France and Britain. This is driven by strong profit forecasts for Danish jeweler Pandora (+ 14%), German clothing maker Zalando (+ 4.4%) and Danish pharmaceutical company Novo Nordisk (+ 3.3%). Data on wholesale inventories for August is due today in the US.