🇺🇸 USD – BULLISH
1️⃣ General risk-aversion sentiment. US Treasury Secretary Steven Mnuchin said on Wednesday that reaching any coronavirus stimulus deal before the election would be difficult.
2️⃣ Mounting coronavirus infections and further restrictions in Europe, Brexit uncertenity, and an attempt from the PBoC to depreciate the yuan continue to support the dollar.
🇬🇧 GBP – BEARISH
1️⃣ Britain will be pressured to make concessions in three key areas of trade talks, such as fishing rights, corporate governance and fair competition, a day after British Prime Minister Boris Johnson told European Commission President Ursula von der Leyen that he was disappointed there had not been more progress in negotiations.
🇪🇺 EUR – BEARISH
1️⃣ A second wave of coronavirus infections across Europe, coupled with new lockdown restrictions in several countries, continued to threaten the region’s economic recovery.
2️⃣ Investors remain cautious ahead of a highly anticipated EU summit starting later in the day, with doubts arising about whether the EU and UK will be able to reach a Brexit deal.
3️⃣ CPI data expected to print negative this Friday due to lower German and France CPI on September.
🇳🇿 NZD – BEARISH
1️⃣ Investors moved into the US Dollar on doubts over an additional round of fiscal stimulus and delays in the development of a coronavirus vaccine.
2️⃣ The RBNZ has said it may cut its cash rate into negative territory early next year to stoke inflation as the coronavirus pandemic drives up unemployment.
🇨🇦 CAD – BEARISH
1️⃣ Stocks dropped and the greenback caught a fresh bid-wave in the US last session after Treasury Secretary Steve Mnuchin explicitly said that a fiscal deal before the November 3 election is difficult.
2️⃣ Crude oil prices slumped on the general wave of risk aversion in world markets overnight, which revived the usual fears about global demand weakness.
🇦🇺 AUD – BEARISH
1️⃣ The US Dollar firmed against major currencies in a safe-haven bid amid doubts over an additional round of US fiscal stimulus.
2️⃣ Australia’s seasonally adjusted unemployment rate edged up to 6.9% in September from 6.8% in August.
3️⃣ Dovish comments from the Reserve Bank of Australia (RBA) Governor Phillip Lowe, which bolstered expectations of a rate cut as soon as in November.
🇯🇵 JPY – BULLISH
1️⃣ No fiscal stimulus in the US and coronavirus cases in Europe fuel risk-off trading.
🇨🇭 CHF – BULLISH
1️⃣ The risk-off mood underpinned the safe-haven CHF.
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