The dollar remains under some pressure versus high-yielding currencies despite the risk-off tone dominates the markets
US stocks traded lower on Monday amid renewed coronavirus concerns and fading hopes for a stimulus package, with the deadline for the White House and Democrats to reach a compromise on fresh fiscal relief nearing. As a result, the S&P 500 fell 1.6%, the Dow Jones Industrial Average dropped 1.4%, and the Nasdaq Composite lost 1.7%.
Echoing Wall Street’s decline, Asian stock markets declined on Tuesday as investors are getting more cautious amid rising concerns about the risk of a disputed U.S. election outcome, with global uncertainty about the continuing economic damage from the coronavirus pandemic adding to the downbeat mood among investors. as a result, Japan’s Nikkei 225 declined 0.44%, South Korea’s Kospi gained 0.49%, Australia’s S&P/ASX 200 fell 0.7%, while the Shanghai Composite rose by 0.46%.
In Europe, equities slipped Tuesday amid worries over the political environment on both sides of the Atlantic. However, upbeat quarterly results from UBS helped to ease the selling pressure in the region. The Swiss banking giant said its third-quarter profit nearly doubled, thanks to a 42% surge in global market revenue. UBS shares rallied 2.5% following the report.
Meanwhile, the dollar remains under some pressure versus high-yielding currencies despite the risk-off tone dominating markets on Tuesday. Still, EURUSD struggles to regain the 1.18 handle that capped the upside momentum at the start of the week. Later today, US construction activity data could affect short-term dynamics in the pair. Globally, the developments surrounding the US stimulus package remain in market focus.
Elsewhere, gold prices remain in a muted trading range, struggling for direction these days. At the same time, the precious metal continues to derive support from the 20-DMA, trying to regain the $1,900 psychological handle during the European hours on Tuesday. On the upside, the bullion needs to make a decisive break above the $1,93o resistance to stage a more robust ascent.
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