Rising COVID-19 cases are fueling fears of a second wave. Safety bids are supporting the dollar.
Trade tensions are weighing on economies. Grim IMF global growth predictions fuels demand the franc and yen.
Factors ranging from fears of a second wave of coronavirus to rising trade tensions fueled demand for safe-haven currencies. Thus, on Thursday, the United States dollar edged higher.
The dollar index advanced 0.1% to 97.30. Nevertheless, it remained below the 2020 high of near 103 in late March.
Deutsche Bank’s analysts made a note. In a letter, they said that a plethora of bad news concerning the virus led to a significant sell-off in risk assets yesterday. This is because volatility returned to financial markets once again.
The British pound retreated to $1.2410. Meanwhile, the euro fell to $1.1242.
A resurgence of COVID-19 cases from Kyrgyzstan to the United States fueled fresh fears that the V-shaped economic recovery gave expectations that the market was in jeopardy.
Dollar and Others
The IMF Fund slashed its 2020 global output forecasts further. Thus, it predicted more damage from the pandemic than it had previously forecasted.
There is also one more thing that is souring the mood. There is news that, for various European products, Washington is considering changing tariff rates. This is the part of the trading partners’ aircraft dispute.
Canada’s dollar weakened to a 10-day low versus the United States dollar. This was after it became the first country to lose its AA rating. This was the result of coronavirus-fueled government spending.
Commerzbank analysts commented that the far-reaching financial support that the Canadian governments provided to cushion the effects of the corona lockdowns has come at a price.
Commodity currencies had been supported by a rally in commodity and oil prices. Thus, the commodity currencies also fell. The Australian dollar dropped for a second consecutive session, to a low of $0.6861.
This is the current news of the market.