23November, 2020No Comments|| 2
On Monday morning in Asia session, the dollar was down amidst hopes of early distribution of COVID-19 vaccines to control the spread of the virus.
The US Dollar Index was down 0.34% to 103.145 by 12:12 AM ET (4:12 AM GMT)
The FDA is looking forward to grant approval on Mid December for the release of the vaccine candidate produced by Pfizer Inc and German partner BioNTech.
The U.K. could also grant regulatory approval to BNT162b2 this week.
However, millions of Americans are warned to stay at home until the upcoming thanksgiving holidays to curb the spread of disease and prevent the increasing number of infections brought by the second wave of COVID-19.
On Wednesday, the Fed’s policy meeting will be released and will be scrutinized for confirmation that Fed policymakers discussed adding to the central bank’s asset-buying plans.
“The minutes should help gauge whether our call for a lengthening of the maturity mix as soon as the December meeting remains on track,” TD Securities analysts said in a note.
Despite the losses that the US dollar incurred for the past few days/weeks, some investors are still on the long-term bullish side of the dollar.
“We think that the exchange rate will rise further over the next few years against a backdrop of lower euro-zone stability risks; an increased real yield gap between the euro-zone and the U.S.; and a continued recovery in the global economy,” Capital Economics analysts said in a note.
In the daily charts of GBP/USD, the pair edged up early Monday morning in Asia session.
As what we can see in the chart, the sterling is surging up against the US Dollar and is being supported at the support level at 1.31776.
With the dollar’s performance affected by the vaccine sentiments from investors, the dollar is falling against a basket of major currencies.
Sterling on the other hand is being supported by Brexit hopes between EU and UK. A decision that will come in a few weeks greatly affects the sterling’s performance. A Brexit-deal will most likely support the sterling and we may see the pair test the resistance level at 1.34 or break out from this level.
However, a no-deal may hurt the sterling and we may see the price breakdown from the support level at 1.31776 and re-test the support level at 1.26885
Don’t forget to follow and subscribe for more updates about market trends, analysis, forex news, strategies and more!
Do you want to learn more about forex trading? Sign up now on our FREE forex webinar and reserve your FREE seats while it still lasts!
Information on this page is solely for educational purposes only and is not in any way a recommendation to buy or sell certain assets. You should do your thorough research before investing in any type of asset. Learn to trade does not fully guarantee that this information is free from errors or misstatements. It also does not ensure that the information is completely timely. Investing in the Foreign Exchange Market involves a great deal of risk, resulting in the loss of a portion or your full investment. All risks, losses, and costs associated with investing, including total loss of principal and emotional distress, are your responsibility.