Let us track the changes in the market. Some analysts are attributing the pickup in sentiment to United States regulators approving a treatment for COVID-19 patients. Thus, in early London trading on Monday, the dollar fell, European markets opened higher, and riskier currencies gained.
More than 800,000 people across the globe have died from coronavirus. In the United States alone, deaths surpassed 170,000. On Sunday, the country granted ‘emergency use authorization’ for treatment using the blood plasma from patients who have recovered from the disease.
European indexes opened higher, and Asian shares strengthened overnight. Also, riskier currencies, such as the British pound and the Norwegian crown, rose against the dollar.
The United States dollar was little changed overnight. Nevertheless, it fell as markets opened in Europe. The greenback was down around 0.1% at 93.105 by 0704 GMT.
Dollar and Others
Marshall Gittler works at BDSwiss Group. He is head of investment research there.
He warned clients to be wary of a false ‘risk-on’ mood. Moreover, he questioned if the authorization represented a real treatment breakthrough. Furthermore, Gittler asked if it was time to boost President Donald Trump on the eve of the Republican National Convention.
Against the greenback, the Australian dollar was up 0.3% at 0.71785. The country’s treasury said that effective unemployment climbing above 13% affected it little.
Against the dollar, the euro was up around 0.1%, at $1.18075. Last week, the United States dollar outperformed the euro for the first time since mid-June. This happened because United States business activity improved. Meanwhile, European business surveys showed the economic recovery faltering.
On Saturday, in France, the health minister ruled out a total lockdown. Nevertheless, he said that localized measures could be taken. On Sunday, the country posted a new record high in daily post-lockdown infections.
Also, Italy said it was not considering a new lockdown. This is despite the fact that there are a rising number of infections.
This is leading news of the market.