The US Dollar came under pressure as high-risk assets moved higher after a sentiment shift which came about after the existing trade pact between the US and China was left unchanged. Higher risk assets, including the Aussie and Canadian Dollars, edged higher on news of the postponement of Phase 1 of the trade deal. While that pact is still a contentious issue and could still come under review, it was enough to provide a shift in momentum away from the greenback. Analysts say that with a week of uncertainty ahead, which will include the latest minutes from the Fed's most recent policy meeting, and coupled with weak economic data, any positive movement for the greenback is likely to be limited.
As of 11:09 am in London trade, the AUD/USD was trading higher at $0.7188, a gain of 0.2106% and off the session peak of $0.71969. The USD/CAD was lower at C$1.3227, down 0.29%; the pair has ranged from a low of C$1.32244 to a high of C$1.32742.
Euro Pressured by Coronavirus Resurgence
In the Eurozone, a resurgence of the Coronavirus has left some currency strategists to worry that the recent uptrend for the Euro could soon be challenged as a result. Spain, Germany, France, and Croatia are only a few of the European countries seeing an uptick in the numbers of infected. That has led other nations, including the UK, to impose quarantines and lockdowns for those coming across the borders into their country. Currently, the EUR/USD is trading at $1.1851, up 0.0676%. Across the globe, more than 21 million people have been infected with Covid-19; the largest group, however, is from the US, with 5.3 million reported infected.