U.S. Dollar Appreciates Amid Rise In Infections
The U.S. dollar climbed against its major counterparts in the European session on Wednesday, as rising coronavirus infection cases in the United States and elsewhere soured market sentiment.
Tokyo reported a jump in infections to mark its highest daily tally since May 5 while Germany reported 712 new cases, fueling concerns about a second wave of coronavirus infections.
New infections rose 25 percent in the United States in the week ended June 21 and the death toll in Latin America passed 100,000 on Tuesday, according to a Reuters analysis and tally.
Anthony Fauci, the top virus expert in the U.S., told Congress on Tuesday that the next two weeks would be critical in trying to keep the virus under control.
The European Union may impose a ban on American travellers when it eases controls on its external borders.
U.S. Treasury Secretary Steven Mnuchin said the Trump administration is discussing another stimulus package that could be passed in July.
The greenback rose to 1.1269 against the euro and 0.9461 against the franc, from its early lows of 1.1326 and 0.9433, respectively. The greenback is seen finding resistance around 1.10 against the euro and 0.97 against the franc.
The greenback firmed to 2-day highs of 1.3584 against the loonie and 0.6423 against the kiwi, off its early lows of 1.3528 and 0.6514, respectively. The greenback is likely to find resistance around 1.37 against the loonie and 0.62 against the kiwi.
The greenback reversed from an early 6-day low of 1.2543 against the pound and rose to 1.2466. Against the aussie and the yen, the greenback climbed to 0.6897 and 106.65, respectively. Next key resistance for the greenback is seen around 1.22 against the pound, 0.64 against the aussie and 108.00 against the yen.
The Federal Housing Finance Agency’s U.S. house price index for April will be issued at 9.00 am ET.