Former California Republican Party chairman Tom Del Beccaro says Californians are tired of liberal policies and points to how many residents and businesses are leaving the state for places with lower violence rates and taxes.
TOKYO – The dollar rose against major currencies on Monday as traders sought more data for a meter on the health of the global economy and the Federal Reserve’s Jackson Hole annual retreat for guidance on the outlook for US monetary policy.
Sentiment for the greenback has improved somewhat due to supportive data on business activity and home sales outlets, but there are still concerns that additional monetary clearance may be needed to keep economic growth on track.
Traders in the yuan, and across broader financial markets, are also looking nervously at Sino-American ties, as the broad diplomatic dispute with President Donald Trump with China has no signs of diminishing.
“There could be a short-term bounce in the dollar, especially against the euro,” said Junichi Ishikawa, senior foreign exchange strategist at IG Securities in Tokyo.
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“In the long run, the dollar will begin to decline again, as the Fed has to commit itself to aggressive enlightenment for quite some time.”
Against the euro EUR = D3 the dollar held stable at $ 1.1803, holding on to gains made last week.
The British pound GBP = D3 bought $ 1.3095 and traded at 90.14 pence per euro EURGBP = D3.
The greenback gained 0.9121 Swiss franc CHF = D3, and held 0.5% profit from Friday.
The yen held tight, with the dollar changing hands at 105.76 yen JPY = D3, showing little reaction after Japanese Prime Minister Shinzo Abe arrived at the hospital on Monday amid speculation about his health.
Triangle made from $ 100 banknotes with Benjamin Franklin portrait inside.
Federal President Jerome Powell will discuss monetary policy on Thursday at the opening day of the Kansas City Fed’s annual symposium.
This year, the meeting will be held online, and not at the Jackson Hole Hunting and Fishing Resort in Wyoming due to the coronavirus pandemic.
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The quantitative easing that the Fed has deployed so far has flooded financial markets with too much liquidity and waited for the dollar.
Last week, the dollar index = USD fell against a rate of six major currencies to the lowest in more than two years. It was last traded at 93,155, slightly changed from Friday.
The world’s policymakers have unleashed an unusual wave of monetary demand and fiscal support to offset the economic downturn caused by the pandemic.
However, many countries are now struggling with a second wave of infections, which could further delay a full-fledged economic recovery. As usual, investors this week will also look forward to a further run of data for indications on the global economy, including a second estimate of US GDP for the second quarter, as well as weekly unemployment claims and some Asian indicators on the second tier.
The euro was on the defensive after disappointing data on manufacturing sector and services for Europe released on Friday.
The next major hurdle of the single currency is the release of the closely-watched Ifo sentiment survey on Tuesday.
The euro has retreated slightly from a two-year high against the dollar reached last week, making it vulnerable to short-term gains, some analysts say.
Net short positions in the dollar fell from a more than nine-year high a week earlier, according to calculations by Reuters and US Commodity Futures Trading Commission data released on Friday, suggesting that the decline of the greenback could begin to slow .
The speculative community has been short of the US dollar since mid-March.
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The yuan CNY = CFXS at the igge traded at 6.9175, slightly changing the day at noon of continuing doubts about foreign ties with US-China.
Trump on Sunday raised the possibility of decoupling the U.S. economy from China as part of a wide-ranging dispute with Beijing over China’s role in global trade and advanced technology.
The Australian dollar AUD = D3 rose to $ 0.7175 after the state of Victoria reported its lowest daily increase in new coronavirus infections in seven weeks on Monday, optimizing that a deadly second wave was deteriorating there.
The New Zealand dollar NZD = D3 was stable at $ 0.6542.
