News on COVID-19 vaccine candidate clinical trials pause kept markets on edge as investors see the quick introduction of a vaccine as key to helping economies recover.
Coronavirus pandemic overshadowed Chinese trade data that pointed to a buoyant recovery.
Investors increasingly expect Democratic candidate Joe Biden will win the U.S. presidential election next month. That would probably lead to a big stimulus package to help the coronavirus-battered U.S. economy.
Britain’s unemployment rate rose by more than expected in the three months to August. The jobless rate hit 4.5%, its highest in more than three years.
U.S. consumer prices rose for a fourth straight month in September. However, the pace has slowed amid considerable slack in the economy as it gradually recovers from the COVID-19 recession.
The Labor Department said on Tuesday its CPI increased 0.2% last month after gaining 0.4% in August. The CPI advanced 0.6% in both June and July after falling in the prior three months.
On the Brexit front, investors singled out news out of Brexit negotiations as the sole driver of the currency’s future short-term direction.
Recent reports have shown that the EU wants more concessions from Britain before entering a last, intense phase of negotiations. The two chief negotiators say they are inching towards a deal, though they have underscored that important gaps remain.
START TRADINGForex – J&J COVID-19 vaccine trials paused
Currency traders were also watching Chinese trade-related issues.
The dollar index rose 0.2% to 93.214, trying to extend a rebound from Friday’s near-three-week low of 92.997.
Against the euro, the dollar rose 0.2% at 1.1788. News that a Johnson & Johnson Covid-19 study was paused due to an unexplained illness in a participant contributed to a modest dollar rise.
The fact that investor sentiment in Germany fell by more than expected in October failed to leave a mark on the euro.
Reports that Beijing has stopped taking shipments of Australian coal caused the Australian dollar to drop as much as 0.6% to $0.7165. The Aussie also fell 0.3% against the New Zealand dollar.
Elsewhere, the British pound fell 0.2% against the U.S. dollar at $1.3037 but was neutral against the euro at 90.45 pence. The pound has been only minimally affected this week by labour market data.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money