The virus is spread as a firm virus and the stimulus will raise awareness through Reuters.

By Tom Westbrook

SINGAPORE (Reuters) – The dollar rallied on Monday on rising coronavirus cases in Europe and the United States and a lack of progress on the US stimulus package, although hopes of a Brexit trade deal kept sterling stable.

Against the basket of currencies (), the greenback traded water in the Asia session, after falling sharply last week. It rose about 0.2% against the risk-sensitive Australian Australian dollar and the euro.

Sterling However, 30 is firm at 1.3024.

The highest number of new Covid-19 cases has been reported in the United States for two consecutive days, as well as in France. Spain declares new state of emergency and Italy orders restaurants and bars to close until 6 p.m.

U.S. House Speaker Nancy Pelosi said Sunday that she expects the White House to respond Monday to the latest stimulus spending plan, but received few indications that the long-stalled deal is really close.

“The prospect of a pre-election monetary deal is a resurgence and news on COVID and a possible tight lockdown is enough,” said Ray Attril, head of FX strategy at the National Bank of Australia (OTC).

He said a half-percent drop in S&P 500 futures () has boosted currency markets, where traders also traded higher on November 3. Is in a cautious mood ahead of the election.

Japanese Yen The dollar slipped by a fraction to 104.85 on the strong dollar and other Asian currencies traded down a touch.

The pound held steady above the 1.30 level in hopes of success in stabilizing trade deals between Britain and Europe.

Over the weekend, Britain’s Northern Island minister said there was a good chance of a trade deal.

Blue Waves and Canbank

The week ahead will see three major central bank meetings and a final sprint for voting in the United States.

Bank of Canada and Bank of Japan expect a fire for now, while the market expects the European Central Bank to be cautious on inflation and growth, even if it leaves more easing on Thursday.

Commonwealth Bank Australia v Australia Australia (OTC 🙂 Currency Analyst only. The risk is that ECB President Christine Lagarde made the proud strikes during a post-meeting press conference, Caperso said.

“If President Lagarde emphasizes the negative risks facing the eurozone economy, the counter-cyclical dollar could rise.”

Analysts have also speculated that if Biden wins next week, especially if Democrats gain control of the Senate, a larger US stimulus package will likely be provided. But investors are cautious.

“I think the dollar is as polarized as it is now,” said Diego Perilla, chief investment officer at Quadriga Ignito, a fund created to make a profit in the face of market downturn.

Weakening the outlook on the dollar, he said that on the one hand, the Fed and the U.S. We have a very clear desire from the government that they can print troubles and borrow from them.

“But it’s almost as much a consensus and as big a position as it gets, you’ll see a bigger reversal, and my personal opinion is that it’s a good thing to own a dollar during a period of stress.”

Elsewhere, China’s top leaders chart the country’s economic course for 2021-2025 at a key meeting starting Monday and may adopt more or less flexible growth targets.

Yuan , Which has risen more than%% since May as China led the world to a recovery from the COVID-19 epidemic, low with a broader mood, at .6.85852૨ per dollar.

Last Monday, investors are examining the German sentiment survey, which is at 1400 GMT, following last week’s strong buying managers index index and US housing data.