Production fell, and countries across the globe, including several states of the United States, Italy, and Finland, eased lockdown restrictions.
Moreover, the euro slipped 0.1% to $1.0892. It was hit by a court challenge from German academics to the European Central Bank’s program of bond buying.
Later, on Tuesday, there will be a ruling. Meanwhile, it is doubtful that German Bundesbank will participate in asset purchases. Moreover, anything less than a clear-cut defeat of the challenge can hit the single currency.
Traders are worried about the rising tensions between the United States and China. Thus, on Tuesday, the United States dollar edged higher for a second consecutive day. Meanwhile, the dollar of Australia gained thanks to a bounce in oil prices.
There was a bit of improvement in the risk sentiment on further easing of measures of lockdown. Thus, the gains of the dollar were marginal. The relaxation of lock measures makes people think that the global economy is close or just past the worst of a deep downturn.
The United States
Charalambos Pissouros is a senior market analyst at the JFD Group. He said that investors had turned their telescopes back to ease of the ‘stay at home’ measures. It happened at the same time with the slowdown in both infected and death cases, helping sentiment.
Nonetheless, against a basket of its rival, the United States dollar edged up 0.1% to 99.55. Thus, it was not far away from a near two-week high of 100.83 in late April.
Moreover, ahead of a November 3rd presidential election, the United States President Donald Trump stepped up verbal attacks. Thus, the dollar strengthened after it. Nevertheless, it raised fears concerning that a new trade war will start.
Australia’s Reserve Bank left its targets for three-year government bond yields and cash rate unchanged at 0.25%. Thus, the Australian currency inched up more than 64 cents to $0.6454.
