Dollar, pound wobble as investors eye Brussels, U.S. stimulus
The dollar took a pause from selling pressure on Wednesday as Nestor’s weighed risks ahead, including Brexit trade talks in Brussels, the U.S. Congress debating for an additional economic package, and an upcoming ECB meeting.
The dollar index sat at 90.923, a little above the 2 ½-year low hit on Friday. The pound steadied at $1.3365 in Asian trade, just above its recent lows.
Other majors held onto their gains, with the euro, kiwi, and Aussie steadying after long rallies.
Traders have been cautious about the uncertainty of a Brexit deal, progress on an additional U.S. economic package, and the ECB meeting on Thursday.
Britain is on the edge of a chaotic split from the European Union if it fails to secure a deal at the end of the year before its trade privileges expire.
Elsewhere, investors are eyeing talks about a U.S. coronavirus aid, with the Trump administration proposing a $916 billion aid after Democrats rejected a smaller figure.
The Aussie held at $0.7441, while the kiwi traded at $0.7041. Against the Japanese yen, the dollar stood at 104.15.