Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Dollar Edges Higher; Veterans Day Limits Volumes

ForexNov 11, 2020 02:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Peter Nurse - The dollar edged higher in early European trade Wednesday in thin volumes, as traders continued to digest the implications of Pfizer’s potential Covid-19 vaccine.

At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was up just 0.04% at 92.775.

EUR/USD fell 0.02% to 1.1812, USD/JPY rose 0.1% to 105.39, while the risk sensitive AUD/USD rose 0.2% to 0.7295.

It's Veterans Day in the U.S., and the Treasury market is closed, limiting activity in the foreign exchange markets severely.

“The U.S. data calendar is light today and it looks as though FX markets want to consolidate after some big moves (especially in emerging markets), but favour DXY drifting to the 92.00/92.15 range lows,” said analysts at ING, in a research note.

The news from Pfizer (NYSE:PFE), and its partner BioNTech, that data from their phase III trial suggests their vaccine is “90% effective in preventing Covid-19” prompted a rush into riskier currencies on Monday, but this momentum is starting to fade because there are still several obstacles to clear before a vaccine can be distributed.

Some focus Wednesday may be on the European Central Bank's annual two-day forum, an occasion that has previously been used to signal changes in monetary policy.

That is unlikely this year as the ECB has already signaled new monetary policy measures for December, but traders will be listening to President Christine Lagarde’s views about the European economic outlook and stimulus prospects.

“Today should also see some welcome progress of the EU Recovery fund in Brussels, which can drag EUR/USD back to the 1.1920 area,” ING added.

Elsewhere, GBP/USD traded at $1.3274, close to a two-month high due to growing optimism that Britain and the European Union will agree a long-sought-after trade deal.

This view was helped by the news that the House of Lords has rejected the government’s controversial Internal Markets bill, which would breach the Withdrawal Agreement that is governing the post-Brexit transition and undermine the basis for a free trade agreement after the transition.

Additionally, NZD/USD rose 0.9% to 0.6887, climbing to its strongest level in more than a year as traders scaled back bets that the central bank would move to negative interest rates.

New Zealand’s central bank instead agreed to begin a new Funding for Lending Program in December, offering cheap loans to lenders to further reduce borrowing costs and stimulate the economy as it recovers from the coronavirus pandemic.

The central bank reiterated it is prepared to use additional tools such as negative rates if required, but the country’s successful containment of Covid-19 has buoyed confidence that this measure won’t be needed.


Dollar Edges Higher; Veterans Day Limits Volumes

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
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.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
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'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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email