US dollar
The dollar declined near two-year lows on Wednesday as the United States struggled to contain a spike in coronavirus cases, dashing hopes for a quick economic recovery. The dour outlook for the world’s largest economy is expected to see the U.S. Federal Reserve sticking to a dovish stance at its policy review later in the day.
Meanwhile, the pandemic continues to rage in parts of the U.S., hot spots in Europe and across big emerging economies including India and Brazil. Global Covid-19 deaths have topped 659,000, with the number of cases beating 16.7 million as of July 29, according to Johns Hopkins University data.
The euro traded at $1.1740, up on the day though it has stepped back a tad from Monday’s 22-month high of $1.17815. The dollar changed hands at 104.98 yen, near a 4-1/2-month low of 104.955 hit the previous session. The British pound fetched $1.2930, having hit a 4-1/2-month high of $1.2952 on Tuesday.
Oil prices traded at $41.15 on Wednesday after an industry report showed that crude inventories in the United States fell against expectations.
Gold hovered around highs on Wednesday morning as the US dollar remained weak and debate continued in the U.S. over the next COVID-related stimulus package.
Looking ahead, the market may keep a quieter tone as all eyes turn towards the Fed where potential new stimulus could be discussed.