European session review: USD depreciates as U.S. President Trump signals he is interested in comprehensive bill

USD fell against its major rivals in the European session on Friday, as risk sentiment improved after the U.S. president signaled that he is open to the idea of a large-scale stimulus package.

The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, dropped 0.31% to 93.31.

Nancy Pelosi's spokesman tweeted that Treasury Secretary Steven Mnuchin told House Speaker that the U.S. president Donald Trump is interested in reaching an imminent agreement on a comprehensive bill. This tweet came after Pelosi stated that she will not agree to a stand-alone aid bill for airlines unless the White House commits to a larger stimulus package. It also revealed another erratic reversal in Trump's position on stimulus talks. Earlier this week, he abruptly ordered his team to stop negotiations on a new economic stimulus package with Democrats. 

The announcement that Trump wants a "big deal" with Pelosi raised investors' hopes that Democrats and Republicans can reach an agreement on a broader coronavirus legislative package before the November 3 Presidential elections. Pelosi and Mnuchin will resume negotiations later today. 

In addition, investors bet that Joe Biden, the Democratic candidate for U.S. president, if elected, would quickly spend money to stimulate economic recovery.