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Dollar higher on vaccine hopes

U.S dollar rose against a basket of six major currencies ending to settle at 92.84 after hitting a 10-week low on Friday, on news of the development of a coronavirus vaccine which raised optimism of a global economic recovery.

Pfizer a U.S. drug-maker and BioNTech its German partner announced that a large-scale clinical trial showed their vaccine was more than 90 Percent effective in preventing COVID-19.

The vaccine news comes as the global tally of COVID-19 infections reached 50.68 million on Monday, stoking worries of more lockdown measures across the globe.

Earlier on Monday the Greenback took a dive after Biden crossed the threshold of the 270 electoral college votes required for victory on Saturday by winning the battleground state of Pennsylvania. Republicans appear to have retained control of the Senate, though the final makeup may not be clear until runoff votes in Georgia in January.

expectations for a massive U.S. fiscal stimulus package have been lowered, which has sent bond yields sharply lower in anticipation of less borrowing and more quantitative easing from the U.S. Federal Reserve.

in the economic space, The Non-farm payroll report which comes on the first Friday of every month and one of the most anticipated reports from the US came at 638,000 higher than expectations of 600,000.

Moreover, the unemployment rate fell to 6.9 percent better than expectations of 7.7 percent.

 

Over in Europe, the Common currency traded lower on Monday’s session against the Greenback to settle at 1.1812 EURUSD pressured by a stronger dollar.

Later today investors will be keeping an eye on Germany ZEW Economic Sentiment report which gauges the six-month economic outlook, expectations show that the figure will land at 41.7 lower than the previous reading of 56.1.

 The Great British Pound was Flat versus its counterpart, the U.S. Dollar, to settle at 1.3162.

In the economic space, the U.K. Average Earnings Index which measures the change in the price businesses and the government pays for labor is due to be released later today's expectations are citing a one percent increase.

Regarding Safe-Haven assets, the Japanese Yen dropped higher against the Greenback to end the session at 105.34 USDJPY.

Moreover, the Swiss franc fell against the U.S dollar to settle at 0.9128 USDCHF.

The Precious Metal ended Monday’s trading session lower, The Gold finished the session at 1855 pressured by the vaccine news.

Elsewhere in Canada, the Lonnie which is a commodity-sensitive currency traded higher on Monday’s session. The USDCAD ended the session at 1.3005.

The Aussie Dollar finished the session higher to end the trading session at 0.7284 but currently trading near 0.7300.

Cryptocurrencies ended that session falt, with Bitcoin settling at 15368 BTCUSD. Moreover, Litecoin and Ethereum ended the session at 56.78 LTCUSD and 445 ETHUSD, respectively.

 

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