The US dollar showed strengthening on Wednesday and indirectly pushed the euro to a one-week low. Moreover, the prospect factor of the curfew order in Germany and France due to the significant surge in the Covid-19 case. The yen continued to strengthen against the looming U.S. election.
Germany and France are now preparing to announce a curfew as death toll from Covid-19 deaths across Europe rises by almost 40% in a week, while financial markets are affected by concerns over the impact of Covid-19 on the economy.
The European Commission on Wednesday proposed a series of new measures to combat the Covid-19 outbreak in the European Union, saying the surge in new infections in Europe was "alarming".
The market is in a cautious mood due to the approaching U.S. election date. A Reuters poll found that Democratic presidential candidate Joe Bide topped Donald Trump by 10% higher.
UBS strategists say the Biden administration is seen to reduce trade tensions with Europe, Canada and China. This is likely to increase overall market sentiment and will offset the US dollar.
The US dollar index strengthened 0.60% against major currencies to 93.487.
