Continued Woes Weigh On the Greenback
The US index closed below 92 on Wednesday as sentiment remains negative over the contraction of the US economy.
The ADP missed expectations on the number of private-sector jobs in the US. The figure of 167,000 was far from analysts’ expectations of a 1.6 mln rise.
The recent gains made by the US dollar over the yen did not last as we witness a negative close for the third day in a row. The safe-haven asset has been a key focus amidst the current weakness in the dollar.
The AUDUSD rallied to an 18-month high as the pair was also buoyed by the weakened greenback.
Europe Attempts to Get Back to Normal
The euro once again outperformed the greenback yesterday, closing 0.55% higher.
Eurozone retail sales reverted back to pre-COVID levels as more restrictions have been lifted.
This has added pressure over an uncertain US dollar as a slow but steady bloc attempts to get back on its feet.
Pound Remains Cautious After BoE Decision
The pound closed 0.38% higher on Wednesday as expectations for an EU-UK trade deal by the end of October improved.
The Bank of England held its interest rate steady at 0.1% this morning. The pound was supported as the panel implied that rates will remain low until the end of 2021.
Sustained Highs for the Nasdaq
US indices continued their bullish ascent as hopeful traders track talks on a US stimulus package.
The Nasdaq closed 0.16% on Wednesday as fresh highs were recorded.
Airline stocks closed positively after Trump’s call to provide $25 bln aid in the US airline industry.
The Safe Haven Continues to Flourish
Gold rose 0.84% against the USD as we begin Thursday’s trading. The safe-haven shows to be strong during these continuous times of distress.
Momentum remains bullish with doubts over further COVID related restrictions and lockdowns persisting.
EIA Positive, But Sentiment Remains Vigilant
WTI reached $43 during yesterday’s session, its highest level since early March. The EIA report showed inventories had shed 7.4 million barrels in the previous week.
However, these gains rescinded as fuel demand worries caused by a second wave of coronavirus infections outweighed the gains.