European session review: USD strengthens as spike in global COVID-19 cases and uncertainty about U.S. presidential election boost risk aversion

USD rose against most of its major counterparts in the European session on Wednesday as demand for safe-haven assets increased amid a surge in coronavirus infections across the globe and ahead of next week's presidential elections in the U.S. The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, jumped 0.7% to 93.59.

According to the latest data from Johns Hopkins University, the total number of confirmed global coronavirus cases has increased to 44,067,588 and deaths have grown to 1,168,693. 

A recent surge in new infections in Europe forced the region's major economies to head for more restrictions on movement and commerce. French president Emmanuel Macron is expected to announce a month-long national lockdown later today, while German chancellor Angela Merkel is reportedly planning to close all restaurants and bars in Germany. The European Commission president Ursula von der Leyen said today that a spike in virus infections is "alarming" and urged the EU governments to step up response to the pandemic. The developments in Europe elevated concerns that more cities in the U.S. might adopt similar measures to contain their coronavirus epidemic.

The U.S. presidential election, which is to take place in less than a week, also remains in investors' focus. Polls give a former vice president Joe Biden a lead over the U.S. president Donald Trump in the upcoming presidential election, but the contest is much tighter in battleground states that could decide the result of the elections.