Breaking News
Investing Pro 0
Free Webinar - The Role of Psychology in Trading - Thursday, December 8, 2022 | 04:00PM EST Enroll Now

Dollar Up Despite Vaccine Approval and Possibility of U.S. Stimulus Measures

Forex Dec 02, 2020 09:08PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
GBP/USD
+0.33%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/JPY
+0.04%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AUD/USD
+0.77%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NZD/USD
+0.47%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/CNY
-0.09%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PFE
+3.12%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Gina Lee

Investing.com – The dollar was up on Thursday morning in Asia, reversing its earlier downward trend even as the possibility of U.S. economic stimulus measures and the first approval of a COVID-19 vaccine increased investors’ risk appetites.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.04% to 91.037 by 9:58 PM ET (1:58 AM GMT).

Although Republicans and Democrats in Congress have yet to reach agreement over the latest stimulus measures’ price tag, investors remained optimistic that a $908 billion bipartisan proposal is slowly gaining traction.

Congress has until Dec. 11 to pass the $1.4 trillion budget or risk a government shutdown, adding a big incentive to reach a deal before the deadline.

Across the Atlantic, the U.K. became the first country to approve a COVID-19 vaccine, the BNT162b2 candidate jointly developed by Pfizer Inc (NYSE:PFE) and BioNTech SE (F:22UAy), on Wednesday. Inoculation of those most as risk is expected to begin early in the following week.

The news helped to give the euro a boost, despite expectations that the European Central Bank (ECB) will enhance its quantitative easing when it convenes for its monetary policy meeting on Dec. 10.

"On the whole, the new U.S. economic team under President Biden will be dovish, if not directly pursing a weaker dollar per se … the next target for the euro should be its February 2018 peak of $1.2555. When the ECB eases its policy next week as expected, I bet the euro will gain rather than fall," Sumitomo Mitsui (NYSE:SMFG) Bank chief strategist Daisuke Uno told Reuters.

The USD/JPY pair inched up 0.10% to 104.50. Japan’s services Purchasing Managers' Index (PMI) came in at 47.8 in November, little changed from October’s figure of 47.7.

The AUD/USD pair edged down 0.17% to 0.7402. The AUD saw a 26-month high overnight as investors digested Wednesday’s positive data, including GDP, that showed that the Australian economy saw a stronger-than-expected bounce back in the third quarter. Across the Tasman Sea, the NZD/USD pair edged down 0.11% to 0.7061.

The USD/CNY pair edged down 0.12% to 6.5547. China released November’s Caixin services PMI which beat expectations by coming in at 57.8.

Investors are also looking at the offshore yuan, which saw a two and a half year high in November and continues to maintain its strength over expectations that U.S. President-elect Joe Biden’s administration will be more conducive to Chinese economic growth.

The GBP/USD pair inched up 0.03% to 1.3367. The pound was hovering near a three-month high, after trading unevenly during the previous session as Brexit talks between the U.K. and the European Union (EU) reach "a make-or-break moment", according to chief EU chief Brexit negotiator Michel Barnier.

Envoys from EU member states also urged Barnier not to be rushed into an unsatisfactory agreement, even as the year-end deadline to reach a consensus looms closer.

The talks reportedly remain stalled, as they have been for the past few months, over issues such as fishing rights in U.K. waters, ensuring fair competition guarantees and ways to solve future disputes.

Dollar Up Despite Vaccine Approval and Possibility of U.S. Stimulus Measures
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Fomo Overdrive
Fomo Overdrive Dec 03, 2020 3:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this headline didnt age very well did it
Tubsy SkinntFinger
TubsSkinnyFinger Dec 03, 2020 2:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Looks down to me
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email