Forex Today: Dollar falls out of the market’s favour

Here is what you need to know on Thursday, October 1:

The financial markets were led by the risk-related sentiment, with the greenback seesawing between gains and losses. Risk appetite surged during the American afternoon on renewed hopes for a US coronavirus aid package, and while Senator McConnell said that Republicans and Democrats are far apart of virus relief, the mood remained upbeat. Ahead of the close, Treasury Secretary Mnuchin announced there’s no deal yet.

The American dollar lost ground against most major rivals on the improved sentiment. However, EUR/USD closed in the red around 1.1720. The GBP/USD pair edged higher, despite mounting concerns related to the latest coronavirus outbreak in the UK.

US data came in better than anticipated, as the ADP survey showed that the private sector added 749K new jobs, beating the market’s expectations of 650K. The country also published the final reading of Q2 GDP, which resulted in -31.4% slightly better than the previous estimate of -31.7%. The figures supported the optimistic sentiment.

Wall Street held on to gains but pulled off daily highs amid the lack of progress in a US coronavirus aid package.

Regeneron Pharmaceuticals reported positive data on a potential coronavirus treatment, which reportedly reduces virus levels and improve symptoms in sick patients who weren’t hospitalized. Meanwhile, Moderna reported progress on its coronavirus vaccine but added that it won’t likely be ready until late November.

Gold briefly surpassed 1,900 but closed the day unchanged around $1,886.00 a troy ounce. Crude oi prices recovered alongside equities, with WTI settling at $40.00 a barrel.

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