Dollar holds gains on shaky market sentiment

14.10.2020 - Korneychuk Evgeniya
Dollar holds gains on shaky market sentiment

The dollar held on to gains against most peers on Wednesday as doubts about a COVID-19 vaccine and lack of an agreement on a U.S. stimulus aid urged investors to a safe-haven bid.

The euro and the pound are expected to fall as Europe and Britain battle a second wave of the coronavirus, reimposing economic restrictions.

The yuan steadied against the dollar after the Chinese central bank made a move to control its strength.

Currency movements are expected to be subdued as the U.S. presidential election draws near. However, analysts say the market sentiment is leaning towards safer assets and will most likely support the dollar in the coming days.

Against the euro, the dollar traded at $1.1744, holding on to a 0.6% gain from the last session. The pound stood at $1.2932, weighed by little progress in the EU-Britain post-Brexit talks and the prospect of negative interest rates from the Bank of England.

In onshore trade, the yuan stood at 6.7422 on the dollar. The Chinese currency posted its biggest fail in seven months on Monday.

The Aussie was little changed in Asian trade but is expected to fall further amid a dispute with Beijing over coal imports. The kiwi gained against the dollar on upbeat economic data.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or Market Solutions limited." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?