Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Dollar Down, U.S. Election and COVID-19 Worries Cap Gains

Forex Oct 29, 2020 10:49PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Gina Lee – The dollar was down on Friday morning in Asia, and the euro hovered near a four-week low against the dollar over hints from the European Central Bank (ECB) that it could roll out further monetary easing by the end of the year.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies edged down 0.15% to 93.838 by 10:39 PM ET (2:39 AM GMT), after climbing to a near four-week high during the previous session over the euro’s decline.

The USD/JPY pair edged down 0.15% to 104.45. A rebound in U.S. treasury yields and broad dollar buying saw the greenback rally from a five-week trough overnight.

The AUD/USD pair was up 0.33% to 0.7051 and the NZD/USD pair inched up 0.05% to 0.6634.

The USD/CNY pair was down 0.34% to 6.6914.

The GBP/USD pair inched up 0.07% to 1.2936. The U.K. and the European Union (EU) continue to work towards reaching a post-Brexit trade agreement by the end of the year.

The ECB announced its monetary policy on Thursday, keeping interest rates steady but committing to craft a response to the second wave of COVID-19 cases in the region by its December meeting and conforming to investor expectations.

“We agreed, all of us, that it was necessary to take action and therefore to recalibrate our instruments at our next Governing Council meeting,” ECB President Christine Lagarde said.

“The economy in the euro zone is deteriorating at a faster pace than expected, and some view that monetary easing won’t be enough to lift the euro zone, or that it will be too late [in December]. Such reactions probably pressured the euro to fall,” Mizuho Securities chief currency strategist Masafumi Yamamoto told Reuters, adding that the euro is unlikely to rise in the immediate future.

An advance estimate of U.S. third-quarter GDP released on Thursday showed a 33.1% rise quarter-on-quarter, the fastest pace since records began in 1947. Separate data showed that 751,000 Americans filed for unemployment claims in the week ended Oct. 24, against the 791,000 claims from the previous week.

Although the dollar was on track to post its second monthly gains, uncertainty over the Nov. 3 U.S. presidential elections and worries over the mounting number of COVID-19 cases capped gains.

The number of global cases rose by 479,000, according to the World Health Organization, and France and Germany begin government-mandated lockdowns on Friday and Monday respectively. The U.S. also reported rising cases in 41 of the country’s 50 states.

Investors now await data due to be released later in the day, including the EU’s third quarter GDP and October inflation, while across the Atlantic, the U.S. is due to release September data on personal consumption and expenditures, as well as the Chicago Purchasing Managers Index (PMI).

Dollar Down, U.S. Election and COVID-19 Worries Cap Gains

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email