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Dollar higher on vaccine hopes

U.S dollar rose against a basket of six major currencies to settle at 92.98, supported by optimism about a coronavirus vaccine, earlier this week the optimism was offset by worries about how the drug will be delivered and by a surge of new infections in the United States.

optimism regarding the coronavirus vaccine testing pushed the dollar up but this momentum is starting to fade because there are still several obstacles to clear before a vaccine can be distributed while Many U.S. states imposed restrictions to limit the spread of the virus as hospitalizations soared.

The dollar's decline had been predicated on crumbling U.S. bond yields, as the Federal Reserve promises low rates for a long time, and hopes for a global recovery that would lift other currencies.

Earlier this week 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.

in the economic space, investors will be keeping an eye on the U.S. Initial Jobless Claims expectations show that figure will land at 735,000.

 

Over in Europe, the Common currency traded lower on Wednesday’s session against the Greenback to settle at 1.1776 EURUSD after the European Central Bank said it would focus on bond-buying and cheap loans to boost Europe’s exhausted economies.

In economic news, Germany ZEW Economic Sentiment report which gauges the six-month economic outlook came at 39 below expectations which showed that the figure will land at 41.7.

The Great British Pound was lower versus its counterpart, the U.S. Dollar, to settle at 1.3220 as Britain and the European Union negotiations dragged on till the 19th of November.

In the economic space, markets will be awaiting key economic data from the UK Including the GDP and the manufacturing production figures.

Regarding Safe-Haven assets, the Japanese Yen was lower against the Greenback to end the session at 105.41 USDJPY.

Moreover, the Swiss franc fell against the U.S dollar to settle at 0.9170 USDCHF.

The Precious Metal ended Wednesday’s trading session lower, The Gold finished the session at 1865 pressured a stronger dollar.

Elsewhere in Canada, the Lonnie which is a commodity-sensitive currency traded lower. The USDCAD ended the session at 1.3061.

The Aussie Dollar finished the session relatively flat at 0.7279 and currently trading below 0.7300.

Cryptocurrencies ended the session higher, with Bitcoin settling at 15822 BTCUSD. Moreover, Litecoin and Ethereum ended the session at 57.13 LTCUSD and 464 ETHUSD, respectively.

 

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