The market mood remained tepid so far this Tuesday, despite the Wall Street tech rally, in the face of scepticism over a likelihood of a US fiscal stimulus deal to be reached soon. Further, news that the UK pharma giant, Johnson and Johnson, paused its COVID-19 vaccine trial due to an unexplained illness also powered the risk-off flows.
EUR/USD remained pressured around 1.1800 amid vaccine news and re-imposition of stricter restrictions in Germany, Spain and France to contain the coronavirus second wave. New infections in Germany once again top 4000 on Tuesday.
GBP/USD consolidated the early drop around 1.3050 as BOE Governor Andrew Bailey downplayed expectations of negative interests while UK PM Boris Johnson announced a three-tier system of restrictions for England.
USD/JPY refreshed intraday high in the previous session and later retreated below 105.40.
Gold held the lower ground around the $1915, looking to extend the correction from two-week highs of $1,930. WTI rebounded to test $40 after hitting a five-day low at $39 amid the return of oversupply concerns.
Looking ahead, the German/EMU ZEW survey is due later in the European morning and is expected to shed further light over the morale of market participants regarding the economic rebound in the region.
The NA session sees the release of the core CPI from the US at 12:30 GMT, and the API Weekly Crude Oil Stock at 20:30 GMT
US Dollar’s haven demand back in play amid stimulus delay and vaccine trial pause
Published on 2020-10-13 07:24
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