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The dollar down slightly against the euro, the market is groping

16/11/2020
Source : Agence France Presse ECOFI
Categories: Index/Markets

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The dollar was down slightly against the euro and other major currencies in a market split between positive indicators in Asia, new announcements about a future vaccine and the progression of the pandemic in the United States.

Around 20:25 GMT (21:25 in Paris), the dollar fell 0.09% against the euro, to 1.1845 dollars to the euro while it stabilized against the yen, grabbing 0.04% to 104.59 yen to the dollar.

The dollar index, which measures the value of the greenback against a basket of other major currencies, fell 0.12%.

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 in the decline of the dollar a lower interest of currency traders for this safe haven after the announcement of the biotechnology company Moderna that its vaccine was 94.5% effective against Covid-19.

This development comes a week after the indication by the American laboratories Pfizer and German BioNTech that the vaccine they are jointly developing reduced the risk of contracting the disease by 90%.

"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 pound sterling was close to balance against the euro and the dollar, reacting little to the announcement of the quarantine of British Prime Minister Boris Johnson.

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19:25 GMT 22:00 GMT

EUR/USD 1.1845 1.1834

EUR/JPY 123.88 123.82

EUR/CHF 1.0811 1.0801

EUR/GBP 0.8980 0.8973

USD/JPY 104.59 104.63

USD/CHF 0.9128 0.9127

GBP/USD 1.3191 1.3189

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