A series of medical setbacks in the fight against COVID is hindering risk appetite resulting in the continuation of dollar gains against the other major currencies for the second day in row. In a pattern observed since the beginning of the pandemic, demand for dollar-denominated assets increases whenever fear drives investors away from riskier instruments. However, the greenback’s gains are to some extent subdued and counterbalanced by optimism about the release of an economic stimulus package and the outcome of the American presidential election, with polls indicating an increasing likelihood of a Joe Biden victory by a clear margin, avoiding the nightmare scenario of a disputed result.
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