Optimism for coronavirus vaccine supports risk-on trading
News from Moderna Inc. stated that their experimental vaccine for coronavirus showed early signs of promise. In reaction to this news, markets moved towards risk-on and the US dollar weakened across the board.
May 19, 2020
EUR/USD 1.0935 GBP/USD 1.2242 USD/CAD 1.3913 AUD/USD 0.6545 USD/JPY 108.00 USD/CNH 7.1165 USD/ILS 3.5207 USD/MXN 23.5046 USD/CHF 0.9708 USD/INR 75.6413
The US dollar is weaker against its peers following positive news from Moderna Inc. that their experimental vaccine showed promise against the coronavirus. Later today, Federal Reserve Chair Jerome Powell will give testimony before the Senate Banking committee.GBPSterling strengthened following news that the UK plans to cut tariffs on many products after it splits from the European Union. GBP/USD hit a high of 1.2268.EUR
EUR/USD experienced its third day of advances climbing to a high of 1.0976. The common currency strengthened after news that Germany and France agreed to a 500 bn euro aid package to support the EU’s economic recovery from the pandemic.CADUSD/CAD trades lower breaking through 1.40 and hitting one-week low of 1.3905. The Canadian dollar has been supported by coronavirus vaccine optimism and higher oil prices with June WTI contract up 1.8%.ASIA/PACIFICUSD/JPY hit a weekly high of 107.95. The Japanese yen has been under pressure as investors speculate that the Bank of Japan will hold an unscheduled meeting on May 22.
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