Greenback holds small features as markets buffeted by COVID-19 woes, election uncertainty By Reuters

By Tom Westbrook

SINGAPORE (Reuters) – The greenback clung to small features on Tuesday because the dollar’s safe-haven enchantment was burnished by worries a couple of second wave of COVID-19, which drove the steepest inventory market selloff in a month and underpinned a bond rally.

The USA, Russia and France all hit new day by day information for coronavirus infections and in a single day the S&P 500 index () fell 1.9% and Germany’s DAX () dropped 3.7%.

Strikes within the foreign money market had been extra muted, although the () lifted about 0.3% in a single day and held there early in Asia commerce whereas regional equities fell.

The biggest features for the dollar on Monday got here towards the (), up 0.4%, which was hit by a drop in German enterprise confidence, and a 0.7% rise on the Canadian greenback as oil costs slumped.

The yuan nursed a 0.5% loss as Sino-U.S. tensions flared over arms gross sales to Taiwan.

“The greenback is broadly stronger, however not massively,” stated Nationwide Australia Financial institution (OTC:) senior FX strategist Rodrigo Catril.

Structural forces, like low actual yields, have held again additional features, he added, and so has a wait-and-see strategy to the U.S. election.

“I believe many would most likely bear in mind the dangerous experiences we had entering into to the Trump-Clinton election (in 2016),” stated Catril.

“When you had a place on, you’ll have been whipsawed huge time. I believe the technique this time is to journey gentle, and to decide on the…