Today the United States dollar is still on the decline. The USD has weakened this week due to a gradually more pessimistic estimate of the economic recovery process in the United States. The Federal Reserve did not announce any adjustment to its monetary policy this week, which deeply disappointed investors. In addition, the number of coronavirus cases is increasing in the US again, in part due to schools and universities reopening, and this is further straining the economy.
On the other hand, more traditional safe havens such as gold and the Japanese yen are appreciating against the dollar. These two assets once again present a profitable opportunity for traders.
The day concluded with a report on consumer confidence by the University of Michigan, which is a report that investors hold in high esteem. The report comes on the back of disappointing retail sales data for the previous month. However, despite some earlier worrying signs, the Michigan report showed sentiment increased more than expected to 78.9.
The issue of Chinese social media TikTok and messaging app WeChat is also still unfolding. The apps will be removed from all app stores within the United States at the end of this week and users will not be able to download them. However, current TikTok users will be allowed to still use the platform, at least in its most basic form, as some advanced functions might be limited.
TikTok has until mid-November to work out a deal with Oracle, who vouched to be its US partner and help the platform retain access to the burgeoning US market.
In spite of all the possible risks on the market today, US stock indices are showing a recovery and making gains today.
