GBP/USD: Will US GDP Lift Dollar vs. Pound?
  • The US dollar bulls dictate the pace of the major.
  • Coronavirus worries resurge as a second wave is seen across the world.
  • Europe’s economic growth pessimism grows.

Fresh two-month low was seen in EUR/USD as the greenback strength pulled down the pair to mid-1.1600s. The coronavirus vaccine hopes didn’t help the mood while the fears of another round of the pandemic gained ground. The US dollar strength continued unabated on this background despite warnings from Fed officials regarding the economy requiring more stimulus to sustain recovery.

The selloff in the equities also helped the haven-linked greenback.

The renewed worries also hit the euro that the severe lockdown restrictions will be back as the coronavirus cases are increasing. Also, the signs that the economic slowdown could be a strong possibility in the Euro Zone dragged the common currency.

The economic growth was down in September according to Markit flash Eurozone Services PMI, which fell to 47.6 for September – indicating a contraction. The manufacturing sector reading was at 53.7 compared to 51.7 earlier, while the composite PMI stayed just off the 50 mark – the one separating contraction and expansion. Euro traders are awaiting the release of German IFO Business Climate today.

Initial Weekly Jobless Claims and New Home Sales data are in the US docket for today. Market participants will keenly watch the testimony before the congress by the Fed Chair Jerome Powell and Treasury Secretary Steven Mnuchin.