The US dollar advanced against risk-sensitive currencies including the Australian dollar, New Zealand dollar and Canadian dollar in early trading on Thursday. The move came after a gloomy economic forecast from the Fed and reports of rising coronavirus cases in the US.
Gold edged higher in early Tuesday trading, lifted by a weaker US dollar as investors eye the Federal Reserve meeting set to conclude on Wednesday. Meanwhile, inceased risk appetite and robust equity markets threaten to keep a lid on the yellow metal's price.
Gold prices fell by 2% on Wednesday as stocks rallied on hopes of a faster than expected recovery from the fallout of the coronavirus pandemic. Meanwhile, investors shrugged of the historic civil unrest in the United States and US/China trade tensions.
The US dollar index closed lower for a fifth consecutive day on Monday as hopes of a faster than expected global economic recovery from the COVID-19 pandemic took hold. Markets remained steady despite widespread civil unrest in the United States due to the death of George Floyd and ongoing US/China trade tensions.
Risk sensitive currencies such as the Australian dollar, New Zealand dollar and Canadian dollar gained ground in early Tuesday trading as hopes grew over global economic recovery from the fallout of the COVID-19 pandemic. Positive coronavirus vaccine news and indications that global economies are slowly reopening helped to buoy investor mood.
USD/CAD fell to trendline support on Wednesday, as the Canadian dollar was boosted by rising crude oil prices and hopes of a global economic recovery. Equities, crude oil and the risk sensitive Australian dollar also benefited from rising investor confidence.
Gold consolidated in early trading on Tuesday after reaching its highest levels since October 2012 on Monday. The yellow metal was pressured and stocks jumped amid rising risk appetite, spurred by news of a potential COVID-19 vaccine.
The British pound fell to its lowest levels against the US dollar since April 7th in early trading on Thursday. Grim GDP data resulting from the coronavirus lockdown weighed on sterling, while the dollar was lifted by dismissive comments on negative interest rates by Federal Reserve chairman Jerome Powell.