To complicate the scenario, President Trump, frustrated with lack of progress by Congress, said he expects to sign executive orders Friday or Saturday to extend enhanced unemployment benefits, impose a payroll tax holiday, provide eviction protection and student loan repayment relief. Its unclear if the Trump really has the power to make these changes because Congress passes tax laws not the President. However, it may be within his means to defer taxes and extend deadlines but not suspend them so employers may continue to collect taxes. He could also re-appropriate unused funds allocated to the CARES Act to extend unemployment benefits and as Pelosi said, Trump may have to power to extend eviction moratorium on his own. Still, all of these questions worry investors and give them reasons to sell dollars.
Non-farm payrolls is also a risk which is why the dollar traded lower against most of the major currencies today. Economists are looking for non-farm payrolls to rise by 1.48 million in July, which is a fraction of the increase they saw in June but the worry is that companies added even fewer workers to payrolls last month. Not only did some of the most populous US states tightened restrictions last month as virus cases hit record highs, but other economic measures reinforce the fear that job growth slowed.
From BK asset management
