On Monday, the American currency surged across the board as a likely second wave of pandemic outbreak in the United States and Europe had pushed the investors on their toes and helped US Dollar regain its safe-haven appeal.
Apart from a rise in the pandemic cases that stoked frets of another round of forced business closure over the coming weeks, a lack of progress in US pandemic relief talks over the Capitol Hill had added further strains.
US Dollar regains safe-haven bid as pound, euro edged lower
In point of fact, a lack of progress in the US stimulus talks before the November 3 US Presidential election had been the major market mover on Monday, while US House Speaker Nancy Pelosi’s upbeat remarks that the White House was expected to deliver a response to the latest $1.8 trillion stimulus plan, had barely made an impact on the day’s FX market.
On top of that, media headlines that the AstraZeneca vaccine had resumed its trial in the United States and had been proved to be successful to generate a better immune response against the pandemic pathogen, had fallen short to rekindle investors’ appetite for riskier assets.
Meanwhile, adding that the media reports which cited vaccine hopes, might have kept a lid on the losses on Monday’s FX markets, a chief global market strategist at a brokerage firm Axi, Stephen Innes said, “Fortunately, there are several vaccines in the pipeline, or we could have been looking at a pretty significant market reset this morning with COVID-19 flash points flaring up in virtually every corner of the globe this weekend.
” Citing statistics, on Monday’s commodity market, the US Dollar Index (DXY) measured against a basket of six major currencies added 0.2 per cent to 92.92, while the Turkish Lira had been plunged to an all-time low of 8-per US Dollar for the first time on record.
Besides, the bloc’s single currency dipped 0.4 per cent against the greenback to $1.1808 after the German Ifo business climate Index had reported a plunge for the first time in six months, while the American currency had also added 0.1 per cent against the safe-haven Japanese Yen to wind down the day at 104.85 per Dollar.
Elsewhere, offshore Chinese Yuan was jolted 0.5 per cent lower to 6.6982 against its American counterpart, while following a 3 per cent plunge of the crude oil futures’ prices, the Norwegian Krona fell 0.2 per cent to 9.2520 per US Dollar after shrugging of as much as 1 per cent earlier in the session and the Canadian Dollar dipped to a 10-day low.
Besides, the British currency had pared some of its earlier losses over renewed Brexit hopes and gained 0.1 per cent to $1.3057.