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The dollar is falling a little, the market is groping

16/11/2020
Source : boursorama.com
Categories: Index/Markets

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The dollar was down a little against the euro and the yen in a market divided between positive indicators in Asia and the rise in the number of Covid-19 cases in the United States.

Around 10:00 GMT (11:00 in Paris), the dollar lost 0.09% against the euro, to 1.1845 dollars to the euro, and 0.10% against the yen, to 104.53 yen to the dollar.

The greenback was embarking on a third straight session of moderate decline against a basket of other major currencies.

The United States recorded one million new Covid-19 infections in less than a week, totaling 11 million cases on Sunday, according to Johns Hopkins University.

"The dollar is falling, largely because it is now clear that this wave of Covid-19 is hitting the United States as severely" as Europe, said Ulrich Leuchtmann, an analyst at Commerzbank.

But other analysts see instead in the decline of the dollar a disinterest of traders for this safe haven, while the CEO of the German company BioNTech, which has developed with Pfizer a vaccine "90%effective" against the new coronavirus, estimated on Sunday that "we could have a normal winter next year".

"Investors are also encouraged by positive data from Asia," said Ricardo Evangelista, an analyst at ActivTrades.

Japan's gross domestic product (GDP) rebounded 5 percent between July and September compared to the previous quarter, a stronger-than-expected recovery, "which relieved" Japanese investors, Sucden analysts said.

The British pound was down slightly against the euro (-0.12% to 89.88 pence per euro) and the dollar (-0.09% to $1.3179 per pound).

"The pound retreated on the announcement that Prime Minister Boris Johnson was in isolation," Sucden analysts said.

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