Asian session review: the US dollar rose moderately against major currencies

During the Asian session, the US dollar rose against major currencies on the back of growing demand for safe assets. This was due to the continued increase in the number of new coronavirus diseases in the United States. According to the latest estimates, the number of new daily cases of the virus in the United States has increased to 36,000. The value is almost near the record level of 36,426 cases recorded at the end of April. The percentage of positive results in testing is also growing. The governors of New York, New Jersey and Connecticut ordered tourists from nine other US States to be quarantined for 14 days upon arrival, as COVID-19 showed signs of a surge in the Southern and Western parts of the country.

While some investors expect that the economic impact of the second wave of infection infections may be less than that of the first, some market participants think that politicians may not respond decisively so as not to risk the state of the economy.

Additional concern in the markets was caused by the tension in trade relations between Washington and Brussels. News has emerged that the US is considering changing tariff rates on various European products. All this undermines hopes for a rapid recovery in the global economy and encourages investors to reduce their appetite for risky assets.

The canadian dollar continued to decline against the background of the downgrade of Canada's sovereign rating by Fitch to the level of "AA “from” AAA", citing the deterioration of the country's public finances in 2020 due to the COVID-19 pandemic.