European shares slipped on Monday with travel stocks leading the declines after Britain imposed a quarantine on travellers returning from Spain, where cases of the novel coronavirus have surged in the last few weeks.
Gold surged to record highs on Monday as an intensifying U.S.-China row and a weaker dollar sent investors scurrying to the safety of bullion to hedge against the risks to a global economy already reeling from the COVID-19 pandemic. Spot gold rose 1.7% to $1,934.06 per ounce, after hitting a record high of $1,943.93.
FX Markets :
The dollar index (USD) fell overnight, steadied in the early hours of the morning, then continued its descent. The dollar index traded at 93.777, down 0.6% on the day.
The euro (EUR) rose against dollar on Monday as deteriorating U.S.-China relations and concerns about the U.S. economy weakened dollar across the board. U.S. Secretary of State Mike Pompeo said Washington and its allies must use “more creative and assertive ways” to make the Chinese Communist Party change its ways.
Pound (GBP) was pushed up by a broadly weaker U.S. dollar on Monday, as uncertainty over Brexit and Britain’s economic prospects kept most investors on the sidelines. Britain and the European Union clashed last week over the chances of securing a free trade agreement, with Brussels deeming it unlikely but London holding out hope one could be reached in September. GBP/USD traded 0.3% higher at $1.2827.
The Swiss franc (CHF) remained at its strongest level since June 15th of 2015 at around $0.92, with investors taking a risk-off stance amid uncertainties caused by Covid-19 crisis and escalating tensions between Washington and Beijing. Traders continued to dump the dollar amid concerns about the economic recovery in the US and as Fed is likely to signal more stimulus measures later in the week.
The Japanese Yen (JPY) gains benefits on Monday as the dollar weakened on growing bets of a more accommodative stance from the U.S. Federal Reserve this week. The reserve currency of the world slipped against a basket of currencies, with focus shifting to a two-day Fed meeting starting on Tuesday. Expectations are that policymakers may begin laying the groundwork for more action in September or the fourth quarter.
Follow us on the telegram channel for the latest news, tips and various other information : https://t.me/Monsun_Asia