The Dollar index hedged lower during early Friday trading, after hitting a two-month high on Thursday. Despite this morning’s losses, resulting from a feeble increase in risk appetite that followed reports that a $2.2 trillion fiscal package could be voted next week in the US Congress, the greenback’s short-term performance is likely to remain to the upside. With an economic recovery unfolding at a slower pace than forecast, political partisanship in Washington holding back the release of a much needed fiscal stimulus package and yesterday’s refusal by President Trump, to commit to a peaceful transfer of power, the uncertainty is likely to, in the short-term, reinforce the safe-haven appeal of the Dollar.
