What’s happening: The US dollar rose versus most major currencies on Tuesday, ending its five-session losing streak.
What happened: Worries of the resurgence of coronavirus cases hurting the US economy finally caught up with investors after several bullish sessions. Sentiment was hurt by news of some US states rolling back their reopening measures, sending investors rushing for safety.
Riskier currencies, including the Australian dollar and the euro, which have recorded strong gains since April, moved lower on Tuesday.
Why it matters: Investors scurried for safe-haven assets like the US dollar, as stocks tumbled amid concerns over a rise in covid-19 cases in various states of the country.
Florida’s greater Miami area was the latest to roll back its reopening measures following a spike in coronavirus cases, which surpassed 3 million in the US with the death toll exceeding 130,000. Texas also recorded a record surge in hospitalisations for the eighth consecutive day.
No major economic data was released by the US yesterday, but Wall Street recorded losses as the rise in covid-19 cases continued to slow down reopening measures across the globe.
Meanwhile, the number of cases continued to increase in Melbourne and Victoria in Australia, triggering stricter travel-related restrictions in the country. The AUD/USD forex pair declined after the Reserve Bank of Australia held interest rates unchanged at 0.25%.
The EUR/USD fell to an intraday low of 1.1260 on Tuesday, versus Monday’s high of 1.1346.
After declining to as low as 96.565 on Monday, the US Dollar index, which measures the greenback’s performance versus a basket of six major currencies, gained 0.15% to 96.889 yesterday.
What to watch: Investors will continue to focus on the coronavirus numbers, which remains a major concern. The number of global covid-19 cases surpassed 11.7 million, with the death toll rising above 540,000. No major US economic data are scheduled for release today.