Let us track the changes in the market. German recovery is slower than forecast. The United States dollar gained against. Respond to the second wave of coronavirus rattled investors. French business activity slowed unexpectedly.
Positive United States economic data and concern about the second wave of coronavirus infections met tepid European indicators. So, it pushed the United States dollar higher. Thus, on Wednesday, the euro fell to a two-month low.
Data showed that the private sector of Germany had recovered less than forecasted in September during weakness in domestically driven services. Thus, the United States dollar edged up to $1.1671 per euro. Since July, it is its highest. Also, German consumer morale improved less than forecasted. That is what a survey showed.
In September, French business activity slowed to a four-month low. That is what an earlier report showed. Services in France are weaker than forecast. It is because France struggled to contain a surge in new COVID-19 cases.
Dollar and Others
Also, traders in the euro and the pound are worried that the European Union and Britain will disagree on a free trade deal. It would cause additional economic strain.
In a morning note, Commerzbank analysts wrote that at present, the market is once again dominated about the second wave of coronavirus, above all in Europe. Thus, it means that the United States dollar is in demand too.
Most probably, the United States dollar will continue to gain. It is because coronavirus rattles sentiment in Europe. Nevertheless, uncertainty concerning this year’s United States presidential elections means it could be prone to more volatile swings.
The pound decreased to $1.2692. Since late July, it is its lowest. On Tuesday, British Prime Minister Boris Johnson introduced new restrictions on business activity to combat a second wave of the coronavirus.
Against the Swiss franc, the United States dollar was stable at 0.9201.
That is the current news of the market.