Yahoo Finance FED Chair Powell Puts the Dollar in Focus as COVID-19 Continues to Rile the Markets
Earlier in the Day:
It’s was a particularly quiet start to the day on the economic calendar this morning. There were no material stats to provide direction in the early part of the day.
A lack of stats left the markets to consider the market moves through the European and U.S sessions on Monday.
Risk aversion plagued as investors considered the possibility of a reintroduction of lockdown measures across the EU.
Recent spikes in new COVID-19 cases stemming from governments looking to boost economic activity could ultimately derail any recovery.
The Majors
At the time of writing, the Japanese Yen was up by 0.11% ¥104.53 against the U.S Dollar. The Aussie Dollar was down by 0.21% to $0.7209, with the Kiwi Dollar down by 0.01% to $0.6667.
The Day Ahead:
For the EUR
It’s a quiet day ahead on the economic calendar. Eurozone consumer confidence figures are due out late into the European session.
The bigger question, however, is whether the latest survey captures the effects of the latest COVID-19 spike.
A continued rise in new cases from the weekend will likely continue to test EUR support levels.
At the time of writing, the EUR was down by 0.08% to $1.1762.
For the Pound
It’s also a quiet day ahead on the economic calendar. CBI Industrial Trend Order figures for September are due out.
It remains to be seen whether there will be any sensitivity to the numbers, however. The threat of further lockdown measures as a result of an upward trend in new COVID-19 cases will have a far greater impact.
To make matters worse, the Pound also has Brexit to face in the week as the Internal Market Bill continues t cause political friction.
At the time of writing, the Pound was down by 0.07% to $1.2808.
Across the Pond
It’s a quiet day ahead for the U.S Dollar. Key stats include August’s existing home sales figures.
The numbers are unlikely to have a muted impact on the Dollar and market risk sentiment, however.
FED Chair Powell is in the spotlight once more, giving testimony on Capitol Hill. With the latest spike in new COVID-19 cases, Powell could take an even more cautious stance on the economic outlook. In the summer, the FED Chair had continued to cite COVID-19 as the greatest threat to an economic recovery.
The Dollar Spot Index was down by 0.04% to 93.623 at the time of writing.
For the Loonie
It’s a particularly quiet day ahead, with no material stats due out today.
The lack of stats will leave the Loonie in the hands of market risk sentiment on the day. A real threat of a reintroduction of lockdown measures in key economies does not bode well…
At the time of writing, the Loonie was down by 0.06% to C$1.3316 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
