The dollar edged lower in early European trade Wednesday, weighed by signs the surge in coronavirus vases is hitting the U.S. consumer while the country’s political scene remains divided.
European stock markets opened lower on Wednesday, amid worries that the recent surge in coronavirus cases throughout the region will halt the nascent economic recovery even given the Covid-19 vaccine breakthroughs.
EUR/USD climbed 0.2% to 1.1884, USD/JPY fell 0.3% to 103.86 and elsewhere, GBP/USD climbed 0.3% to 1.3278 after the Sun newspaper reported that a trade deal between the EU and the U.K. could arrive “early next week.”
Oil prices weakened on Wednesday after a jump in US inventories raised fears of a potential glut amid uncertainty over the output plans of the top producers for next year.
Spot Gold trades within a tight $1,885-$1899 range despite a softer USD, as Gold traders continue to weigh conflicting themes of increasing vaccine optimism versus the worsening of the pandemic/more accommodative central banks.
Final eurozone inflation figures for October will likely confirm the drop of 0.3% in the headline Consumer Price Index coming at 10:00 GMT. Later during the early North American session, the US housing market data – Building Permits and Housing Starts – could produce some meaningful trading opportunities. Apart from this, traders will also take cues from developments surrounding the coronavirus saga and the broader market risk sentiment.
US Dollar Weakens and Pound Gains on Possible Brexit Deal
Published on 2020-11-18 09:34
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