On Thursday, the American currency gained across the board as traders’ angsts grew due to a rapid rise in pandemic cases in the United States alongside other heavily populated areas across the globe, eventually denting appetite for riskier assets and reviving the safe-haven bid for the US Dollar.
In point of fact, Thursday’s rally of the US Dollar was almost entirely prodded by a growing fear over steady rise of pandemic cases in the United States alongside a number of dismal economic data including an above 1.4 million in US initial jobless claims for the fourteenth straight week in a row, while worsening tensions over the EU-US trade frontier on Trump Administration’s new policy to incline added levies on products manufactured in major EU economies such as Germany, France, Spain and Sweden had added to further investors’ woes.
Aside from that, US Labour Department data on Thursday had shown that the US citizens filing for initial jobless clams fell by only 58,000 to a seasonally adjusted 1.48 million, which in effect had intensified frets of a second wave of pandemic outbreak and dashed optimisms over riskier assets.
Dollar gains as dismal data, spike in pandemic cases revive Dollar buying spree
Citing statistics, on Thursday’s FX market closure, the US Dollar index (DXY), measured against a basket of six major currencies on an average gained 0.18 per cent to 97.41, while the bloc’s common currency had faltered 0.32 per cent to round off the day at $1.1214.
Apart from that, the US Dollar had also gained against its safe-haven Japanese counterpart by 0.16 per cent to 107.19 yen per dollar, while the British currency ended up the day slightly lower to $1.2418 against the US Dollar and the US spot gold futures’ prices added 0.17 per cent to $1,763.38 followed by an upsurge in demand for the safe-haven assets.
Meanwhile, addressing to a growing grudge over a steady rise in pandemic cases in the United States which appeared to have winded the Dollar buying bonanza on Thursday’s commodity market, a macro strategist at Wells Fargo in NY, Eric Nelson said, “It’s really fast accelerating in a lot of U.S. states, which is going to continue to be a problem for markets. ”