Dollar Marks 6-wk Highs, Traders Seek Safe-haven

Dollar Marks 6-wk Highs, Traders Seek Safe-haven

#Dollar #virus #riskoff

$USD $DXY $EUR $AUD $NZD

USD rose Tuesday to 6-wk highs, extending gains from the Monday’s session, as markets turned risk-averse over a surge of virus cases and new lockdown measures in UK and Europe.

Although European equities opened higher Tuesday, USD continued its ascent and riskier currencies fell, as new lockdown measures to combat a 2nd wave of C-19 infections pose a threat to the global economic recovery.

The UK will see further restrictions on activity, although Prime Minister Boris Johnson is expected to stop short of announcing a full national lockdown like that imposed in March.

Even though we do not expect more extensive lockdowns, the possibility may weigh on market sentiment for some time.

Riskier currencies extended their losses, with the AUD falling 0.5% to 0.7185, a 1-month low. The New Zealand Kiwi dropped 0.4% to 0.6643 per USD.

EUR was down 0.4% Vs USD to 1.17235.

Have a healthy week, Keep the Faith!

The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.