Dollar Strengthens Amid Rising Coronavirus Cases, Vaccine Trial Halt
The U.S. dollar was higher against its major counterparts in the
European session on Tuesday, as a second wave of coronavirus cases
in Europe and a pause in vaccine trial by Johnson and Johnson
Italy is considering a ban on private parties in response to a
recent spike in new coronavirus cases, while French authorities are
expected to impose new lockdowns in a bid to contain another surge
in the virus cases.
The Czech Republic announced that it would close bars and shift
most schools to distance learning.
Johnson & Johnson said it had temporarily halted its
Covid-19 vaccine trial due to an unexplained illness in a
Data from the Labor Department showed that U.S. consumer
inflation improved modestly in September.
The consumer price index rose by 0.2 percent in September after
climbing by 0.4 percent in August. The reading matched economist
Excluding food and energy prices, core consumer prices still
edged up by 0.2 percent in September following the 0.4 percent
growth seen in August. The uptick in core prices also matched
The currency firmed in the Asian session as Johnson &
Johnson's move to pause its Covid-19 clinical trials prompted
investors to seek the safe haven assets.
The greenback appreciated to 0.9118 against the franc, compared
to 0.9089 hit late New York Monday. The greenback is seen finding
resistance around the 0.94 mark.
The greenback hovered at a 4-day peak of 1.1778 against the
euro, compared to Monday's closing value of 1.1810. Next key
resistance for the greenback is likely seen around the 1.16
Final data from Destatis showed that Germany's consumer prices
declined in September, as initially estimated.
The consumer price index declined 0.2 percent yearly in
September, after remining unchanged in August, as estimated
earlier. Prices fell for the second time since the beginning of the
Extending early rally, the greenback hit a 4-day high of 1.2981
against the pound. The pair had finished yesterday's trading
session at 1.3064. The greenback is likely to face resistance
around the 1.25 region, if it gains again.
Data from the Office for National Statistics showed that the UK
unemployment rate increased and employment declined in three months
to August as the pandemic weighed on the labor market.
The ILO jobless rate rose by 0.4 percentage points from the
preceding quarter to 4.5 percent in three months to August. The
rate was above economists' forecast of 4.3 percent.
The greenback reached as high as 105.49 against the yen, up from
yesterday's closing value of 105.33. Should the greenback
strengthens further, it is likely to test resistance around the
The greenback rebounded to 0.7170 against the aussie and 0.6642
against the kiwi, heading towards 4-day peaks of 0.7165 and 0.6629,
respectively seen in the previous session. The greenback is poised
to challenge resistance around 0.70 against the aussie and 0.645
against the kiwi.
Having dropped to 1.3099 at 8:30 am ET, the greenback turned
higher against the loonie with the pair trading at 1.3140. The
USD/CAD pair had registered a 4-day high of 1.3145 in the Asian
session. Further uptrend may take the greenback to a resistance
around the 1.33 area.
US Dollar vs CAD (FX:USDCAD)
From Oct 2020 to Oct 2020
US Dollar vs CAD (FX:USDCAD)
From Oct 2019 to Oct 2020