US Dollar Supported by Risk-off Sentiment in Markets
The US dollar is trading bullish early on Thursday as the rise in coronavirus cases worldwide sparks fears about a second wave of the pandemic, supporting the safe haven appeal of the Greenback. At the time of writing, the US dollar index DXY is trading around 97.03.
China recently reported a fresh outbreak of cases across Beijing, forcing the government to impose more lockdown restrictions in the region. Markets are trading with a risk-off sentiment as a result, with concerns rising about the possible impact of a second wave on economic recovery worldwide.
Cases are on the rise across the US as well, over the past couple of weeks, a worrying trend after a reduction in the number of infections over the prior month. The US dollar has gained support as a safe haven currency amid the heightened uncertainty about how the fresh outbreak of cases could impact the global economy, even as riskier assets get shunned.
Meanwhile, the AUD weakened against the US dollar over a greater than expected decline in the number of new jobs created in Australia. GBP is trading somewhat range-bound ahead of the BOE meeting scheduled for later in the day as markets await to see if the central bank will announce more QE measures to support the British economy through the coronavirus crisis.
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