Dollar Index Rebounds Slightly As Soaring Covid19 Cases Spur Demand For Safety


The dollar index which measures the greenback against a basket of major currencies rebounded from a one-month low of 96.24 to 96.50 as COVID19 resurgence drove investors towards safety. The United States logged a record single-day cases of 60,000. Also, Japan and Australia discovered new cases. Market participants are afraid that the continued rise in covid19 cases would lead to another economic lockdown, which could disrupt the economic recovery. The EURUSD eased to $1.1325 from $1.1370, and AUDUSD declined to $0.6969.


Major US stock-index futures edged lower during early trading today amid woes over coronavirus spread. Yesterday, the United States recorded 60,000 cases, the highest on a single day. Investors are afraid of the consequences of this continued outbreak. The Dow Jones Industrial Average futures fell to 25857, the S&P500 futures declined to 3151, and Nasdaq futures eased to 10644 after posting an all-time high of 10693.


Gold prices remain elevated, trading near their highest levels since late 2011. The significant surge in coronavirus cases around the world triggered more demand for bullion safety. The price of a gold ounce is hovering around $1810 after hitting $1818 yesterday, the price of a silver ounce rose to $18.95, the highest since September, and palladium futures edged higher to $1968.


Oil prices drifted lower on coronavirus fear and rising US inventories. The coronavirus outbreak continues to threaten the economic recovery, which could weigh on oil demand levels. On the other hand, the US Energy Information Administration reported a significant buildup of 5.654 million barrels in US inventories. The West Texas Intermediate crude August delivery fell to $40.59, and Brent Blend September delivery dropped to $43.00.

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