Dollar rises as risk-off mood persists
Stalled stimulus talks and second-wave lockdown measures in Europe prop up the US dollar. Covid cases continue to rise across the UK and Europe with major cities reinstating serious restrictions and curfews. Treasury Secretary Mnuchin’s comments yesterday deflated hopes of a second round of stimulus ahead of the election as the White House, Republicans and Democrats continue to play the blame game.
“Healthy citizens are the greatest asset any country can have.”
October 15, 2020
EUR/USD 1.1694 GBP/USD 1.291 USD/CAD 1.3235 AUD/USD 0.7061 USD/JPY 105.26 USD/CNH 6.7238 USD/ILS 3.3925 USD/MXN 21.43 USD/CHF 0.9146 USD/INR 73.38
The dollar is higher against all G-10 peers as equity shares slump and second wave Covid concerns rise in Europe. US Treasury Secretary, Steven Mnuchin commented yesterday that a second round of stimulus ahead of the Presidential election “would be difficult”.GBP
Despite being the big gainer yesterday, the pound gave up 0.8% after the government increased the Covid alert level and imposed new restrictions starting on Saturday.EUR
The euro pulled back as bond yields drop and curfews are imposed on large cities. The aggressive drop could change the pair's previous bullish trend if the pair stabilizes below the 1.17 level.CAD
As risk sentiment deteriorated, the loonie slipped the most in three weeks posting a 0.8% loss versus the dollar for the month. ADP payroll data showed Canadian payrolls fell 240.8K in September.ASIA/PACIFIC
The yen trades mostly sideways near the 105 psychological level. The Chinese yuan drops slightly as the PBOC injects liquidity to keep recovery on track.
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