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Dollar in a roller coaster before the elections

U.S dollar fell against a basket of six major currencies ending to settle at 93.49  and currently trading flat as investors most analysts are expecting the U.S recent surge will not last long and the greenback will have a roller coaster in days preceding the elections.

In long the term, analysts remain skeptical about the dollar's strength as the U.S. Federal Reserve's aggressive easing has wiped out the yield advantage of dollar-denominated assets.

The U.S president has made a return to the White House to continue his treatment for coronavirus after a three-night hospital stay. The president was flown earlier this week to a hospital for treatment for the coronavirus.

The (ISM) Non-Manufacturing Purchasing Managers' Index which is an indicator of the overall economic condition for the non-manufacturing sector came at 57.8 beating expectations of 56.3 and the previous reading of 56.9.

Expectations show that U.S. Congress will pass a stimulus package to support the pandemic weakened economy the U.S. House Speaker Nancy Pelosi said on Sunday that progress was being made on coronavirus relief legislation but had earlier flagged key areas of disagreement.

Over in Europe, the Common currency traded higher on Monday against the Greenback to settle at 1.1783 EURUSD.  Investors are watching with concern as coronavirus infection rates climb in Europe.

In economic news,  the EU Retail Sales which measures the changes in sales of the Eurozone retail sector. came at 3.7 higher than expectations of 2.2 percent.

Madrid will become the first European capital to go back into lockdown in the coming days to fight a steep surge in cases.

Furthermore, The Great British Pound was higher versus its counterpart, the U.S. Dollar, to settled at 1.2978.

Traders awaited cues from the final round of Brexit trade talks as the expiry of the transition period at the end of December approached.

Boris Johnson the British Prime Minister and the head of the EU's executive, Ursula von der Leyen, agreed in a phone call on Saturday to step up negotiations on a post-Brexit deal.

Regarding Safe-Haven assets, the Japanese Yen was lower against the Greenback to end the session at 105.74 USDJPY.

On the other hand, the Swiss franc rose against the U.S dollar to settle at 0.9155 USDCHF.

The Precious Metal ended Monday’s trading session higher, The Gold finished the session at 1913.

Elsewhere in Canada, the Lonnie which is a commodity-sensitive currency traded lower on Monday’s session. The USDCAD ended the session at 1.3259.

The Aussie Dollar finished the session higher to end the trading session at 0.7160 and currently trading above 0.7200 as the Reserve Bank of Australia kept interest rates unchanged at 0.25 percent.

Cryptocurrencies ended that session higher, with Bitcoin settling at 10723 BTCUSD. Moreover, Litecoin and Ethereum ended the session at 43.50 LTCUSD and 349.4 ETHUSD, respectively.

 

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