Risk off trading drove investors towards safe havens, boosting the US Dollar. \u00a0Preliminary business activity data both in Europe and the US reflected the threat that rising covid cases pose to the global economic recovery.<\/p>\n
Doubts are growing over additional US monetary and fiscal support which is dragging on the mood. Asian markets traced Wall Street lower and \u00a0US stock futures pulled higher briefly before selling off again..<\/p>\n
Risk off trading lifted demand for the greenback whilst weighing on Antipodeans, \u00a0AUD\/USD was the worst performing major among G10 currencies AUD\/USD slumped to a 2 month nadir under 0.7050 as AU -US 10-year yield spread narrowed amid rising expectations that the Reserve Bank of Australia (RBA) could \u00a0cut rates as soon as October. The kiwi also trended southward towards 0.6500.<\/p>\n
Weaker commodity prices added to the Antipodeans declines. Gold dropped to a 6 week low around $1850 while WTI came close to testing $39 on demand outlook concerns.<\/p>\n
EUR\/USD struck two-month low at 1.1645 amid growing fears of rising covid cases in the old continent, as cases reach 5 million. Mixed PMI reports fuelled belief that the economic recovery is stalling and confidence deteriorating. Attention will now turn to the German IFO survey.<\/p>\n
GBP\/USD struggled at 1.2700, after a brief bounce from 2 months lows to 1.2775 region. The EU\u2019s Michel Barnier expressed his determination to reach a trade deal with the UK. However, rising coronavirus numbers and slowing growth in British business activity weighed on sentiment towards the pound. The UK recorded 6,178 new daily covid cases, the biggest daily jump since May.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Risk off trading drove investors towards safe havens, boosting the US Dollar. \u00a0Preliminary business activity data both in Europe and the US reflected the threat that rising covid cases pose to the global economic recovery. Doubts are growing over additional US monetary and fiscal support which is dragging on the mood. Asian markets traced Wall […]<\/p>\n","protected":false},"author":163946597,"featured_media":5647,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1547,1381],"tags":[1540,2415,1398],"class_list":{"0":"post-105247","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-aud","8":"category-usd","9":"tag-aud","10":"tag-aud-usd","11":"tag-usd"},"acf":[],"yoast_head":"\n