- Dollar rises versus peers
- Riskier assets under pressure amid covid concerns
- Signs of stalling economic recovery hits the mood in the market
- Euro attention turns to Ifo survey as economic picture deteriorates
The dollar advanced versus its peers on Thursday amid growing concerns over resurging covid and slowing economic recovery in Europe and US..
The euro, sold off over concerns of tighter lockdown restrictions and looked towards German IFO business sentiment data
The US Dollar could add to gains amid a resurgence in covid cases and as the Federal Reserve warns that the U.S. economy needs additional government support, boosting safe haven demand.
EUR/USD traded at $1.1658 in the Asian session, just off the 2 month low
GBP/USD trade at $1.2714, almost a two month low.
USD/CHF traded at 0.9240 an almost nine-week high.
USD/JP traded at 105.40 yen, maintaining gains of 0.4% from Wednesday.
Rising covid numbers in mainland Europe and Britain dragged on investor optimism overshadowing vaccine developments.
Economists are expecting the Ifo survey due on Thursday reveal a slight uptick in business morale in the Eurozone’s largest economy
Demand for the Euro is already weak following the surveys released on Wednesday which revealed that tighter restrictions to stem the spread of coronavirus sent the bloc’s service sector back into contraction.
Following that data, riskier assets have fallen out of favour. The mood was dampened further on Wednesday after U.S. business activity data showed a slow down. Several Fed policymakers also warned that additional fiscal support was required to lift the flagging economy
The dollar index (DXY) which measures the US Dollar versus a basket of major currencies, trades at 94.336 on Thursday, an almost nine-week high.
Trading is expected to be muted in the Asian session given the absence of any major macro data releases.
The Australian and New Zealand dollars are in focus and pressurise amid growing expectations for additional monetary easing.
A selloff in commodity prices could add pressure to Antipodean currencies, .
AUD/USD traded at $0.7069, near its weakest since July 21.
NZD/USD traded $0.6549 after tanking 1.3% in the previous session.