The US greenback continues to commerce sturdy into Wednesday, with encouraging financial information releases strengthening the foreign money whilst fears of a second wave of coronavirus and extra lockdowns in Europe and Britain maintain its main rivals beneath strain. On the time of writing, the US greenback index DXY is buying and selling round 94.16.
The US greenback obtained a lift after dwelling gross sales within the nation rose to the very best ranges seen in nearly 14 years throughout August. Nevertheless, cautionary feedback from Chicago Fed President Charles Evans on the US financial system needing extra fiscal stimulus to assist it get better tempered a number of the beneficial properties.
Whereas considerations about recent lockdowns and restrictions throughout Europe are anticipated to maintain the greenback supported within the close to future, there may be additionally a danger of appreciable volatility on account of the upcoming presidential elections within the US. The current strengthening of the Euro is prone to wane as the subsequent spherical of restrictions may decelerate the Eurozone’s financial restoration, sending traders again into the protection of the Buck.
In the meantime, the GBP additionally fell to round a two-month low after UK PM Boris Johnson introduced new measures to include the second wave of coronavirus infections spreading throughout the nation. GBP/USD additionally stays bearish over uncertainties concerning the post-Brexit EU-UK commerce deal.