Forex Today: Dollar’s haven demand back in vogue amid stimulus delay, vaccine trial pause
Here is what you need to know on Tuesday, October 13:
Shrugging-off the Wall Street tech rally, the market mood remained tepid so far this Tuesday, in the face of skepticism over a likelihood of a US fiscal stimulus deal to be reached soon. Further, news that the UK pharma giant, Johnson and Johnson, paused its COVID-19 vaccine trial due to an unexplained illness also powered the risk-off flows.
The Asian stocks traded mostly mixed while the US stock futures slipped on the discouraging vaccine news, which put a fresh bid under the safe-haven US dollar across its main competitors.
EUR/USD remained pressured around 1.1800 amid vaccine news and re-imposition of stricter restrictions in Germany, Spain and France to contain the coronavirus second-wave. New infections in Germany once again top 4000 on Tuesday.
GBP/USD consolidated the early drop around 1.3050 ahead of the UK jobs report. On Monday, BOE Governor Andrew Bailey downplayed expectations of negative interests while UK PM Boris Johnson announced a three-tier system of restrictions for England with the Liverpool region under strictest tier 3. The cable hit five-week highs of 1.3083 despite the looming no-deal Brexit risks.
Gold held the lower ground around the $1915, looking to extend the correction from two-week highs of $1930.
WTI rebounded to test $40 after hitting a five-day low at $39 amid the return of oversupply concerns.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
