The U.S. Dollar On A Spike After The Market Selloff

The U.S. dollar, which has cratered about 10% since rising at 103.00, spreads its gains in September. Investors leave the more widespread financial market selloff and seek shelter in a traditional safe-haven asset.

The growing number of new coronavirus diseases has melted away risk appetite. With the common cold and flu season on the horizon, many investors predict that a resurgence could put a scratch on the stock market rally, especially among the stock benchmark indexes. The U.S. is nearing seven million confirmed cases and 200,000 deaths. The nation is experiencing an uptick in cases after testifying a steep drop-off this month.

As the COVID-19 epidemic continues to frighten markets, the ownership arena is undergoing a sea of red ink

The Dow Jones Industrial Average dropped more than 800 points, the S&P 500 shed 2.2%, and the Nasdaq Composite Index fell 1.3%. The energy and metal commodities are also slipping: U.S. crude fell 4.2%, natural gas decreased 10%, gold plunged $50, and silver dropped 10%.

Congress losing the added coronavirus stimulus and aid package has also discouraged the New York Stock Exchange mood.

All eyes will be on Federal Reserve Chair Jerome Powell’s statement on Capitol Hill today and tomorrow. The Federal Open Market Committee (FOMC) left interest rates maintained at near-zero last week. It promised that it would hold rates low for a few more years. The U.S. central bank also formalized the new inflation program that would enable it to stay above the 2% target rate.

It has been calm on the data front to start the trading week. This week, home sales and prices, purchasing managers’ index (PMI) readings, and durable goods orders will be published.

The USD/CAD currency pair climbed 0.8% to 1.3312, from an opening of 1.3207, at 19:07 GMT on Monday. The EUR/USD fell 0.63% to 1.1767, from the beginning of 1.1840.