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Dollar Buoyed as Stimulus Hopes Dashed

FOREX

The dollar was the best performing currency in G10 Thursday, with a sharp pullback in equities (particularly European bourses) adding further pressure to risk assets and adding weight to the likes of AUD, NZD and NOK.

While Trump said on Fox Business he'd go over $1.8trn on stimulus, he added that Pelosi has 'mental problems', leading markets further to believe there is little hope of a near-term stimulus deal.

This led the USD to gain sharply, prompting the USD index to touch levels not seen since Wednesday last week - a move that further pressured equities and led European indices to shed as much as 2.5%. Poorer than forecast weekly initial jobless claims added weight to the move.

Focus Friday turns to US retail sales and the prelim October Uni. of Michigan confidence data. Fed's Bullard and Williams are both due to speak.

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