Dollar falls to two-year lows amid month-end flows and vaccine optimism
The dollar trades at the lowest level since April 2018 as month-end rebalances indicate dollar selling and positive vaccine news. AstraZeneca announced their coronavirus vaccine could reach 90% efficacy in a single dose and would not require sophisticated refrigeration equipment required with Pfizer and Moderna vaccines. Risk sentiment was buoyed as US officials indicated vaccinations could start in as few as three weeks.
Monday: Market Manufacturing PMI for UK, US, Eurozone
Tuesday: IFO Business climate, US Consumer Confidence
Wednesday: US Durable Goods Orders, US Mortgage Applications, Univ. of Michigan sentiment
Thursday: Thanksgiving Holiday (US Markets closed)
Friday: FR GDP, IT Consumer Confidence, FR CPI
November 23, 2020
EUR/USD 1.1895 GBP/USD 1.3381 USD/CAD 1.3065 AUD/USD 0.7320 USD/JPY 103.75 USD/CNH 6.5669 USD/ILS 3.3428 USD/MXN 20.0409 USD/CHF 0.9080 USD/INR 74.0975
The dollar extends weakness to 2-year lows mostly driven by broad market optimism tied to AstraZeneca’s coronavirus vaccine. Economic data is quiet today as we start the Thanksgiving holiday week. Traders will listen for further signs of US stimulus and relief packages.GBPThe pound leads gains versus the greenback rallying 0.9% bolstered by signs of a deal between the UK and EU is in the near future. Options markets show a Brexit deal is largely priced into the pound as officials from both sides sound upbeat with face-to-face talks set to resume in London midweek.EUR
Risk-on markets pushed the euro dollar pair above 1.1900 – the highest level in two weeks. Data out of the eurozone highlighted the toll coronavirus lockdowns continue to take on economies. Markit PMIs estimates for November falling to 45.1 versus 50 the previous month.CADThe Canadian dollar extended gains versus the greenback amid upbeat investor sentiment and stronger oil prices.ASIA/PACIFIC
The Japanese yen is largely rangebound as Japanese markets observe a holiday today. Asian assets were bolstered by vaccine and stimulus hopes with the MSCI Asia Pacific index rising 0.5%.
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