Major Currency ‘Dive’ At European Session!

 Risk-off sentiment in the market continued to push the US dollar to continue higher during the European session amid growing expectations of US stimulus package negotiations.

The dollar index, which measures the strength of the greenback dollar against six other major currencies, traded up 0.3% at 93.74.

With only 3 weeks to go before the presidential election, Treasury Secretary Steven Mnuchin said the deal was still far from being reached and an agreement might not be reached before next month's election.

The strengthening of the US dollar has led to a slowdown in euro trading weakened by concerns over the surge in new Covid-19 cases in Europe and prompted more sanctions to be implemented.

These sanctions have raised market concerns that they will stop global recovery efforts as hopes for US stimulus before the election fade.

Meanwhile, the release of US unemployment claims data tonight will be the main focus for investors, where it is expected to be lower than the previous reading with an increase of 810,000.

Meanwhile, the Canadian dollar also traded lower against the USD, following a decline in world crude oil prices.

On the other hand, the Aussie dollar continued to depreciate after being impressed by a statement by Reserve Bank of Australia (RBA) Governor Philip Lowe dovish that the central bank is likely to lower interest rates to 0.10% to support the economic recovery.

This has further boosted analysts' expectations that the RBA will cut interest rates during a policy meeting in November.