Home Artikel Market News Asian Shares Plunged, Dollar Surged Amid US Stimulus Concerns

Asian Shares Plunged, Dollar Surged Amid US Stimulus Concerns

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Asian stocks traded lower as the International Monetary Fund (IMF) forecast the economy in the zone was to contract by 2.2% for the entire 2020, instead of by the previously predicted 1.6%.

Crude oil prices pressured amid a deteriorating outlook for fuel demand as coronavirus cases increased in North America and Europe.

Gold prices declined as the dollar recovered some losses after doubts emerged whether an agreement on a new US fiscal coronavirus aid package could be reached before the election.

FX Markets

The dollar index (USD) traded higher after stimulus talks between US lawmakers faced a setback on Wednesday when President Donald Trump accused Democrats of being unwilling to craft a compromise on aid.

The euro (EUR) was retreating from an over 1-month peak amid a stronger dollar after doubts emerged whether an agreement on a new U.S. fiscal coronavirus aid package could be reached before the election.

The UK pound (GBP) declined after Bloomberg report that Brexit negotiations were due to start again after halting abruptly last week. The report also said Britain and the European Union would aim to reach a new trade deal by mid-November.

The aussie (AUD) dropped amid a risk-off tone, which boosted the US dollar.

The kiwi (NZD) jumped despite a risk-off tone after Reserve Bank of New Zealand’s Simone Robbers expressed concern over potential further disruptions from the coronavirus and added that the RBNZ is looking at how to use its monetary policy and alternative monetary policy tools.