The opening of the European market session saw major currency trading show a significant decline following sentiment that turned to risk-off as the second wave of Covid-19 threatened to erode market confidence.
The greenback dollar gained momentum with the dollar index trading strengthened at 93.06 in the European session.
Concerns over the possible implementation of a second coronavirus ban across the UK and Brexit uncertainty have led the pound sterling to fall significantly below the 1.2900 price level against the US dollar.
Chief government medical officials will reportedly warn that the UK is now at a critical stage in the coronavirus pandemic and heading in the wrong direction in a daily briefing today.
Not only that but in some other areas restrictions have also been imposed. In the Spanish capital, Madrid, stricter new measures have taken effect after witnessing an increase in cases and deaths there.
This also prompted euro trading to depreciate at the opening of the European session, with the US dollar starting to rise ahead of Federal Reserve (Fed) Chairman Jerome Powell's speech tonight.
As for the Asian currency, the Aussie and New Zealand dollars plunged lower against the USD. The kiwi dollar previously gained momentum following the announcement of New Zealand Prime Minister Jacinda Arden who lifted all coronavirus restrictions in the country, except in Auckland after daily cases showed a decline.
Meanwhile, current sentiment also prompted the Canadian dollar to trade amid declining crude oil prices due to concerns over weak demand.
