Home Article Market News Wall Street Closed Lower, Dollar Gained Amid Weaker Consumer Confidence

Wall Street Closed Lower, Dollar Gained Amid Weaker Consumer Confidence


Wall Street closed lower on Tuesday as investors worried about weaker consumer confidence, disappointing financial results and a smaller than hoped for coronavirus aid plan from U.S. Senate Republicans. Dow Jones closed down by 0.77% percent, S&P 500 closed down by 0.65% percent, Nasdaq settled down by 1.27% percent.

Gold fell as much as 1.8% on Tuesday from an all-time peak as the dollar firmed and investors squared positions after a rapid rally, with the focus turning to the U.S. Federal Reserve policy stance.

FX Markets :

The dollar index (USD) gained 0.18% to 93.71, after dropping to 93.47 on Monday, the lowest since June 2018.

EUR/USD retreated from its two-year high on Tuesday as traders awaited Federal Reserve meeting on Wednesday. Investors will be watching for any indicatons that the U.S. central bank will increase its purchases of longer-dated debt, implement yield caps or target higher inflation than it has previously indicated when it concludes its two-day meeting on Wednesday. The pair dipped 0.26% to $1.1720, after reaching $1.1781 on Monday, the highest since September 2018.

GBP/USD held near a four-month high on Tuesday as a broad U.S. dollar rout over the past week ran out of steam and negative news from Brexit negotiations prompted hedge funds to take profits. Concerns about the lack of progress of Brexit negotiations also prevented the pound from pushing above the $1.30 levels.The European Union says a deal needs to be done by October to allow time for ratification by the end of the year.

USD/CAD inched higher on Tuesday as oil and gold prices fell, with the loonie pulling back from its highest level in nearly seven weeks reached earlier in the session. The price of oil, one of Canada’s major exports, was lower as demand worries due to a rise in coronavirus cases worldwide undermined support coming from hopes for additional U.S. economic stimulus measures. U.S. crude prices were down 0.8% at $41.25 a barrel.

USD/JPY bounced off from 2 ½ month low on Tuesday but looked primed for further weakness as the United States continued to see a rise in coronavirus cases, while the Federal Reserve is expected to maintain very loose monetary policies. The continued spread of coronavirus is hampering the U.S. economic recovery, while regions like Europe appear to have the virus contained.

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