The US dollar had a choppy day against GBP, and after a positive start weakened gradually during the day against the euro.
News of a spike in coronavirus cases in the US and a potential second wave in China, as well as geopolitical tensions between India and China, are all seeing a renewed interest in the greenback’s status as a safe haven currency.
The dollar is likely to surge against the pound at midday today if the Bank of England either offers more than £100bn of QE or sounds like it is preparing the ground for negative interest rates.
At 12.30 today (US time) we have data on initial jobless claims – a measure of the number of people filing first-time claims for unemployment insurance. This has spiked in recent weeks due to the lockdown but could be reducing now. Then tomorrow we have clues as to the US Federal Reserve’s monetary policy, with a speech from Federal Reserve Chairman Jerome Powell.
