The US dollar fell against a basket of major currencies Monday, on profit-taking from a 2-month high of 94.74 points hit on Friday, in addition to improved risk appetite amid hopes for a new stimulus package in the US.

The dollar index fell 0.5% to 94.15 points, after opening at 94.58, and hit an intraday-high of 94.64.

The index rose 0.3% on Friday, and hit its 2-month high of 94.74 points, on increased by buying momentum against a basket of major currencies.

The US dollar gained 1.6% during the past week, posting its third weekly gain in a month and the largest since March.

The biggest weekly gain in six months came after the greenback shined as the best alternative investment, due to concerns about the global economy after several governments tightened their lockdown restrictions to curb the spread of the coronavirus.

Following these developments, most global stock markets were hit by a broad sell-off move, which has sparked concerns over a liquidity crunch.

Hopes for a new fiscal stimulus in the US were renewed, after House Speaker Nancy Pelosi said on Sunday that a solution can be reached with the White House on another coronavirus stimulus plan, adding that she believes they can come to an agreement.

Brent crude prices continued to rise as the US market opened on Monday, jumping more than 1.5%, as the US dollar fell against its peers, but prices remain curbed by global demand concerns following the rising coronavirus cases in Europe and the US.

Brent crude rose more than 1.5% to $42.42 a barrel, after it opened at $41.77, and hit a low of $41.50.

Brent crude futures lost 0.25% on Friday, on concerns about global demand.

Oil prices fell about 2.5% during the past week, posting the third weekly loss in a month.

The dollar index fell 04% today, to pull back from a 2-month high of 94.74 points hit on Friday, reflecting a broad pause in the US currency's rally.

Alongside profit-taking, the US dollar fell as concerns eased about a liquidity drain in markets, especially after US stocks rebounded in Wall Street.

Bearing in mind that a drop in the US currency lifts the prices of dollar-denominated commodities and metals, making them cheaper for other currencies holders.

The number of coronavirus cases in Europe and the US continues to increase, which has renewed concerns about fuel consumption levels, and ebbed market's hopes for a rapid global demand recovery.

European stocks surged in morning trading on Monday, to rebound from the 3-month low hit on Friday and head for the first daily gain in 3 days, led by the strong rally of bank's shares, as HSBC jumped more than 8%, thanks to improved investors' sentiment following Wall Street's strong gains.

The Stoxx Europe 600 index rose over 2% as of 11:25 GMT, after it closed lower by 0.2% on Friday and posted the lowest level since June 15 at 351.24 points.

The index lost 3.3% during the past week, and posted its first weekly loss in 3 weeks and the biggest since June.

This came amid a broad sell-off move in most global stock markets, due to worries about the global economy, after a surge in the number of coronavirus cases in Europe and the US.

The pan European index opened higher today, in the first session of the weak, rebounding from the 3-month low hit in the previous session, with most of the major European markets and sectors seeing green today.

S&P 500 futures rose over 1.5%, and hit a 2-week high, after the index closed higher by 1.6% on Friday at Wall Street, in its second straight daily gain.

This came thanks to hopes for a solution to the political disagreement on the coronavirus stimulus plan to support the US economy from the pandemic's repercussions.

The banking sector saw the largest gains in Europe today, rising over 4.5%, after HSBC's share jumped 8% following the Chinese investment giant "Ping" announcement of increasing its stake in the British bank.

Back to Europe, the Euro Stoxx 50 index added 2.3%, France's CAC 40 rose 2.2%, Germany's DAX added 2.9%, and the UK's FTSE 100 rose 1.5%.

Gold prices fell in European trading on Monday, to deepen losses for the second straight day and hit a 2-month low, as most global stock markets rebounded due to improved risk appetite amid hopes for a new stimulus package in the US.

Gold prices shed 0.6% to the lowest since July 22 at $1,848.58 an ounce, after opening at $1,860.21, and hitting an intraday high of $1,865.94.

The yellow metal lost 0.95% on Friday, to post its fourth daily loss in 5 days, on stronger dollar. 

During the past week, gold prices lost 4.5%, posting the first weekly loss in 3 weeks and the biggest since March.

The biggest weekly loss in six months came after the US dollar shined as the best alternative investment, due to a broad sell-off move that sparked concerns over a ​​liquidity crunch.

Most stock markets in Asia and Europe rebounded as the week starts, following Wall Street's lead, thanks to improved risk appetite amid hopes for a new stimulus package in the US.

Hopes for a new fiscal stimulus in the US were renewed, after House Speaker Nancy Pelosi said on Sunday that a solution can be reached with the White House on another coronavirus stimulus plan, adding that she believes they can come to an agreement.

Gold holdings at SPDR Gold Trust ETF fell by 0.3 metric tonnes on Friday, to a total of 1,266.84 MT.