The US dollar continues to trade bullish into Thursday, amid a risk-off temper in markets brought on by the continued spike in coronavirus circumstances internationally and nations saying extra restrictions to curb the pandemic. On the time of writing, the US greenback index DXY is buying and selling round 90.75.
The most recent wave of the pandemic has prompted England to announce tighter journey curbs whereas China has also cautioned citizens against traveling throughout the upcoming Lunar New 12 months holidays – the busiest journey season of the 12 months. The renewed restrictions are supporting the protected haven enchantment of the US greenback, driving different riskier friends to nurse losses.
The Euro slipped in opposition to the buck on the again of feedback from an ECB member suggesting potential intervention by the central financial institution within the type of price cuts to curb its latest strengthening. In the meantime, commodity currencies AUD and NZD have additionally weakened as merchants flip extra cautious and the chance urge for food wanes.
The US greenback additionally enjoys assist from a bearish run in international fairness markets on the again of rising considerations about company earnings and potential delay within the rollout of COVID-19 vaccines. Throughout the earlier session, US stock markets fell by over 1% – the steepest decline seen in three months, additional boosting demand for the greenback as a protected haven.