Let us check the market. Against the dollar, the euro reached a four-month high. The U.S. dollar hits a monthly low. New Zealand and Australian dollars gain. Progress towards a COVID-19 vaccine helped equities rebound, and commodity currencies strengthen. Thus, on Wednesday, risk sentiment revived in currency markets.
The United States company Moderna has produced an experimental COVID-19 vaccine. It provoked immune responses in all 45 volunteers, sparking a risk-on mood.
Nevertheless, there was still some cause for caution. This was because of worsening tensions between China and the United States. Moreover, there are fears about the economic impact of the second wave of coronavirus in the United States.
Florida has become an epicenter of the new outbreak. The state reported 133 further COVID-19 fatalities on Tuesday.
This raised its death toll to more than 4,500.
Dollar and Other Currencies
For the first time since June, the United States dollar index fell below 96. Around 0830 GMT, it dropped to a one-month low of 95.866. Afterward, at 1045 GMT, it stabilized at 95.907.
The riskier Australian and New Zealand dollars, versus the U.S. dollar, were both up around 0.5%, after New York’s close. The kiwi was at 0.6568, and the Australian dollar was at 0.701.
Ulrich Leuchtmann works at Commerzbank. He is head of FX and Commodity research there. Leuchtmann said that the main driver there is from the United States dollar. The market questions the role of the dollar as a safe haven. It is considering the economic damage the United States faces if it does not get the coronavirus pandemic under control.
Against the United States dollar, the Norwegian crown gained around 0.5% at 9.319.
Since February 2019, versus the United States dollar, the Swedish crown strengthened to its highest at 9.0555. The fact that the Riksbank has not returned to negative rates supported the crown.
This is the leading news of the market.
- Trading Instrument