The US dollar rose against a basket of currencies on Tuesday, to head for the third daily gain in row, near a 16-month peak thanks to improved demand, after the White House nominated Jerome Powell to serve as the chairman of the Federal Reserve, and ahead of key economic data in the US.

The dollar index rose 0.1% to 96.60 points, after opening at 96.46 points, and hit a low at 96.30 points.

The index gained 0.45% yesterday, after the White House announced the nomination of Jerome Powell.

The White House has formally nominated Jerome Powell to serve as the chairman of the Federal Reserve for a second term ending in 2026, and also Lael Brainard to serve as the Fed’s vice chair.

This step fueled expectations that the central bank will maintain its monetary policy as the economy recovers from the pandemic, amid increased bets that of an interest rate hike in 2022.

At 14:45 GMT, the US Flash Manufacturing PMI reading for November will be released, which is expected up to 59.3 points from 58.4 points in October, and the services PMI reading is expected at 59.1 points from 58.7 points.

Oil prices continued to fall as the US market opened on Tuesday, resuming losses after yesterday's recovery attempts from an 8-week low, after news that the US, China, Japan and India are planning to tap their fuel reserves to reduce energy prices, ahead of preliminary data on the US crude inventories.

US crude fell 1.5% to $75.32 a barrel, after opening at $76.44, and hit a high at $76.57, and Brent crude fell more than 1.2% to $78.58 a barrel, after opening at $79.51, and hit a high at $79.61.

US crude gained 1.1% yesterday after hitting an 8-week low at $74.79, and Brent crude rose 1.3% after hitting the lowest since October 1st at $77.62.

A source in the US administration said that the US is expected to announce today its decision to tap its strategic stockpile, within a plan with major Asian countries.

The OPEC Plus alliance is also expected to adjust its oil output policy if the large consuming countries continued with this plan.

This comes as the global demand may receive a new shock due to a fourth wave of the coronavirus infections in Europe.

Austria has become the first European country to re-impose a complete lockdown to curb the spread of the Covid-19 virus, which has renewed fears over the pandemic, and threatens to slowdown the economic recovery and fuel demand.

Europe's largest economy, Germany, has warned that it may need a full national lockdown to limit the spread of the fourth Covid-19 wave.

The American Petroleum Institute will release its preliminary report on the US crude inventories, amid the US Energy Information Administration will release the official data on Wednesday.

European stocks fell on Tuesday, deepening losses for for the fourth straight session, and hit a 3-week low, due to profit-taking and investors' risk aversion amid fears over the coronavirus spread in Europe, and growing chances for the US Fed to tighten its monetary policy after the White House nominated Jerome Powell to serve as the chairman of the Federal Reserve.

The Stoxx Europe 600 index fell more than 1.1% as of 11:29 GMT, and hit the lowest since November 2 at 477.93 points, after it closed lower by 0.1% yesterday.

The tech sector saw the largest loss in Europe today, with a drop of over 2%, as most of the sector companies fell.

Austria has become the first European country to re-impose a complete lockdown to curb the spread of the Covid-19 virus, which has renewed fears over the pandemic, and threatens to slowdown the economic recovery and fuel demand.

S&P 500 futures fell 0.5% today and hit a 2-week low ahead of Wall Street's opening, after the index closed lower by 0.3% yesterday due to profit-taking from a record high of 4,743.83 points.

The White House has formally nominated Jerome Powell to serve as the chairman of the Federal Reserve for a second term ending in 2026, and also Lael Brainard to serve as the Fed’s vice chair.

This step fueled expectations that the central bank will maintain its monetary policy as the economy recovers from the pandemic, amid increased bets that of an interest rate hike in 2022.

Back to Europe, the Euro Stoxx 50 index fell 1.1%, France's CAC 40 fell 1%, and Germany's DAX index fell 1.2%, while the UK's FTSE 100 fell 0.7%.

Gold prices fell on Tuesday, to head for the fourth straight loss, giving up the $1,800 barrier, and hit a 3-week low weighed down by the strong US dollar after Jerome Powell was nominated for a second term as Federal Reserve Chairman.

Gold prices fell 0.75% to the lowest since November 5 at $1,792.63, after opening at $1,806.22, and hit a day high at $1,812.41.

Gold closed lower by 2.25% yesterday, posting its third straight daily loss and the largest daily loss since September 16.

The White House has formally nominated Jerome Powell to serve as the chairman of the Federal Reserve for a second term ending in 2026, and also Lael Brainard to serve as the Fed’s vice chair.

The dollar index rose over 0.1% today, and hit a 16-month high of 96.60 points.

Gold stocks at the SPDR ETF rose 5.53 metric tonnes yesterday, with the total at the highest level since September 24 of 990.53 metric tonnes.