Dollar pares losses in New York on safe-haven buying

Although the greenback fell in Asia and Europe as investors took profit on usd's recent gains, dollar pared intra-day losses and ended mixed against its G5 peers on Tuesday due to safe-haven usd buying due to weakness in U.S. equities as concerns over a global second wave of the coronavirus and uncertainty over the U.S. Presidential election continued to remain.  
  
Reuters reported the White House said on Tuesday it saw a potential deal on COVID-19 stimulus funding in "coming weeks," casting doubt on whether a deal could be struck with Congress before the Nov. 3 election.    "We're confident that we can get something in the coming weeks," Alyssah Farah told Fox News in an interview.  
  
Versus the Japanese yen, dollar met renewed selling at 104.89 in Australia and dropped to 104.69 in Asia, then 104.68 before staging a rebound to 104.83 at European open. The pair then fell again to an intra-day low at 104.40 in New York on usd's broad-based weakness before moving sideways.  
  
The single currency traded with a firm bias in Asia and gained to 1.1835 ahead of European open. However, the pair met renewed selling there and fell to 1.1797 in early European morning due to weakness in European equities. Price then erased intra-day losses and rose to 1.1838 in New York morning on usd's weakness but only to tumble to 1.1793 near the close on safe-haven greenback buying due to selloff in U.S. equities.  
  
The British pound also traded with a firm undertone in Asia and gained to 1.3045 ahead of European open before falling to session lows at 1.3001 in early European morning. However, the pair erased intra-day losses and rose to 1.3058 at New York open and then ratcheted higher to 1.3079 on cross buying in sterling, especially versus euro but later weakened to 1.3044 near the close on safe-haven usd buying.  
  
In other news, Reuters reported the European Union and Britain are engaging intensively to clinch a deal on their future relationship, before a transition period ends on Dec. 31, the European Commission said on Tuesday.    "Both sides are engaging intensively to reach a deal," a Commission spokesman told a regular press briefing, without commenting on the ongoing negotiations.  
  
On the data front, Reuters reported new orders for key U.S.-made capital goods rose more than expected in September, wrapping up a quarter of potentially record growth in business spending and the overall economy, thanks to fiscal stimulus aimed at softening the blow from the COVID-19 pandemic.     Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, increased 1.0% last month, the Commerce Department said on Tuesday. Data for August was revised higher to show these so-called core capital goods orders increasing 2.1% instead of 1.9% as previously estimated.  
  
Data to be released on Wednesday:  
  
Australia CPI, France consumer confidence, Italy trade balance, producer prices, Swiss investor sentiment, U.S. MBA mortgage applications, trade balance, wholesale inventories and Canada Bank of Canada interest rate decision