- USD / JPY breaks below the 105.00 support and hits the low of 104.35.
- The USD falls nearly 1% to hit one-month lows.
- The dollar falls across the board amid hopes for a US stimulus deal.
The U.S. dollar feels heavy against the Japanese yen on Wednesday. The pair has lost nearly 1% on the day, retreating from the 105.50 area, to break support at 105.00 and hit multi-week lows at 104.35.
The dollar sinks on hopes of US stimulus.
The US dollar has broken below the horizontal trading range of 105.00 / 106.00 observed for the past two weeks, as new hopes about the possibility of a fiscal stimulus deal in the US have triggered a sell-off of US bonds. which has undermined demand for the dollar.
News reports suggesting that the COVID-19 stimulus deal could be closer have been welcomed by the market, which has reacted with a renewed appetite for risk. With investors raising bets on riskier assets, the safe-haven US dollar fell to seven-week lows against a basket of the most traded currencies.
White House spokeswoman Nancy Pelosi said she is optimistic about the chances of reaching an agreement before the presidential election and US President Trump has further boosted hopes today, stating that he is willing to accept. a big aid bill despite opposition from Senate Republicans. .
Credits: Forex Street
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