AUD/USD Pair was the Weakest in the Forex market
The USD continued to attract safe-haven demand amid renewed tensions between the United States and China and the slowing of the global economic recovery. At the same time, the resurgence of the coronavirus rocked Europe and the United Kingdom. Fed policymakers’ optimism and strong US housing data provided an additional boost to the dollar’s rally.
Fed Chairman Jerome Powell said the economy remains resilient during the crisis. Meanwhile, Chicago Fed Chairman Charles Evans noted that the central bank could raise interest rates before reaching the average inflation target of 2%.
The tensions between the United States and China resurfaced once again after the United States president, Donald Trump, returned to criticize China before the General Assembly of the United Nations. He claimed Beijing is responsible for the coronavirus outbreak in the world.
The Asian stocks showed mixed results but were supported by the rally on Wall Street. US equity futures traded mildly higher as the dollar remained strong across the board.
The AUD/USD pair was the weakest in the forex market. It resulted from comments on rate cuts from the Reserve Bank of Australia and falling retail sales in Australia.
The NZD/USD briefly rebounded from lows of 0.6599 monthly with the Reserve Bank of New Zealand status quo on interest rates and asset purchases.
EUR/USD slumped to new two-month lows
The USD/JPY remained stable just above the 105.00 level.
The EUR/USD fell to new two-month lows of 1.1675, undermined by growing concerns about growth while increasing restrictions and confinements in many eurozone economies amid an increase in the virus cases. All eyes remain on preliminary eurozone manufacturing and services PMIs.
The GBP/USD has fallen below 1.2700 after the Prime Minister of the United Kingdom (PM), Boris Johnson, revealed new restrictions. Simultaneously, Andrew Bailey, the Governor of the Bank of England, ruled out negative interest rates in the short term. The Brexit drama is back in the spotlight. As Michel Barnier, the man responsible for the EU’s negotiations with the UK, heads to London for informal trade talks. Brexit talks are expected to be a little better than expected.
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