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Dollar lower as markets brace for a democratic win

U.S dollar dipped against a basket of six major currencies ending to settle at 93.67 as appetite for risker assets improved on hopes of some fiscal stimulus before the elections while most investors prepared for a democrats victory.

Trump had earlier on Tuesday abruptly ended talks with Democrats on an economic aid package, which sent stock markets tumbling and boosted demand for the dollar.

White House officials toned down the possibility of more relief. Pelosi, however, did ask Treasury Secretary Steven Mnuchin to review a standalone bill for 25 billion in aid to airlines.

The greenback was also pressured  on bets that Democratic presidential candidate Joe Biden will win as election polls show him taking a lead, and on growing expectations that Democrats could also take control of the Senate.

Federal Reserve Chair Jerome Powell warned that the U.S. economy could fall into a downward spiral if the coronavirus is not controlled and called for more economic assistance.

Over in Europe, the Common currency traded higher on Wednesday against the Greenback to settle at 1.1761 EURUSD.  Investors are watching with concern as coronavirus infection rates climb in Europe.

Furthermore, The Great British Pound edged higher versus its counterpart, the U.S. Dollar, to settle at 1.2917.

In Brexit news, Britain’s chief Brexit negotiator David Frost and minister Michael Gove reiterated that Britain wanted a trade agreement with the European Union, but Gove said the government is stepping up preparations for a no-deal scenario.

 

Prime Minister Boris Johnson meanwhile told parliament Britain would take back “full control” from the European Union on Jan. 1 when a transition period ends.

Regarding Safe-Haven assets, the Japanese Yen was lower against the Greenback to end the session at 105.96 USDJPY.

On the other hand, the Swiss franc rose against the U.S dollar to settle at 0.9172USDCHF.

The Precious Metal ended the trading session slightly higher, The Gold finished the session at 1887.

Elsewhere in Canada, the Lonnie which is a commodity-sensitive currency traded higher on Wednesday’s session. The USDCAD ended the session at 1.3254 supported by oil prices which traded above 40 USD per barrel.

The Aussie Dollar finished the session higher to end the trading session at 0.7136 while the kiwi dollar ended the session at 0.6577

Cryptocurrencies ended the session slightly higher, with Bitcoin settling at 10640 BTCUSD. Moreover, Litecoin and Ethereum ended the session at 44.20 LTCUSD and 338.5 ETHUSD, respectively.

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