US dollar
The U.S. dollar held onto gains against major currencies on Wednesday, supported by positive U.S. economic data and concerns about a second wave of coronavirus infections in Europe and Britain.
The greenback could possibly continue to grind higher in the short term as the coronavirus rattles sentiment in Europe, but uncertainty about this year’s U.S. presidential election means the dollar could be prone to more volatile swings.
The dollar was quoted at $1.1681 per euro on Wednesday, close to a two-month low hit in the previous hour. The pound was last seen at $1.2689, near the lowest since late July, after British Prime Minister Boris Johnson unveiled new restrictions on business activity to tackle a second wave of the coronavirus. The U.S. currency was little changed at 105.11 yen.
Oil prices fell Wednesday after a surprise rise in U.S. oil inventories added to persistent worries about fuel demand as a surge in coronavirus cases around the globe led to stricter containment measures.
Gold was down on Wednesday morning following a rise in the dollar amid a strong U.S. housing market, against rising global COVID-19 cases.
In the EU session, investors will pay attention to business sentiment in the eurozone and the UK, in the form of PMI data, given the second wave of Covid-19 cases in a number of countries as well as the fraught Brexit negotiations.
In the NA session, the flash version of the US Manufacturing and Services PMIs, along with the Fed Chair Jerome Powell’s will be key to watch.