Markets are governed by concern after a brutal US tech stocks selloff the previous day and a leading coronavirus vaccine candidate faced delay.
The U.S. dollar found support as the stock market slide spooked investors into selling riskier currencies. U.S. equity futures pared losses – with Nasdaq 100 futures swinging to trade 0.4% higher and S&P 500 futures rising 0.6%.
AstraZeneca Plc said it halted global trials of its experimental coronavirus vaccine due to an unexplained illness in a study participant. Roll-out of an effective vaccine is seen as key for economies to overcome the effects of the pandemic.
Further, traders returning from summer holidays, are faced with many risk factors as they enter the autumn period of trading:
- the U.S. election in November,
- Brexit,
- U.S.-China trade tensions,
- central bank policy decisions,
- rising cases of the coronavirus.
Many of such risk factors would both dent the appetite for riskier assets and inject strength into safe havens.
Britain will set out its blueprint for post-Brexit life, publishing bill acknowledges ‘inconsistency’ with international law.
Investors await both Thursday’s European Central Bank meeting and the Bank of Canada’s policy meeting on Wednesday.
START TRADINGForex – US tech stocks selloff sends investors to the greenback
An overnight slump in the oil price dragged down oil exporters’ currencies.
In the early European session, the dollar was mostly steady, pulling back from early gains against most majors.
Euro/dollar was last trading steady at $1.1772, having fallen earlier to a near three-week low of $1.1757 as the dollar rose.
A stronger Japanese yen was the product of a build-up of worries in financial markets over the US tech stocks selloff. USD/YEN fell 0.1% at 105.92 after touching an eight-day low of 105.78.
The Canadian dollar dropped to a three-week low ahead of a Bank of Canada policy decision due at 1400 GMT. Investors expect no changes to interest rates and will focus on the tone around the outlook.
The euro has lost about 2% since posting a 28-month high above $1.20 on Sept. 1.
Worries about the fate of Brexit talks pushed the pound down to a new six-week low. Fears grow that Britain is preparing to undercut its Brexit divorce treaty. Thus, the Biritsh currency It dipped 0.3% to $1.2948, after touching its lowest since July 29. The pound also languished at a six-week low of 91.06 pence against the euro.
Gold prices eased on a firm dollar and as some investors sold bullion to offset losses from a recent selloff in equities. Worries about a delay in the development of the AstraZeneca coronavirus vaccine limited the metal’s declines.
Spot gold fell 0.5% to $1,922.21 per ounce by 1056 GMT. U.S. gold futures fell 0.7% to $1,928.90.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money