Forex Today: Dollar drops on vaccine optimism, clearer US political horizon, Brexit eyed

Here is what you need to know on Monday, November 16:

The market mood is upbeat ahead of Moderna's vaccine news and the US seems to be moving forward from the elections. A broad Asian trade deal and upbeat Chinse data are also boosting the moment. Brexit talks are reaching another crunch moment while the prime minister is in isolation again. 

Coronavirus: Markets are focusing on hopes that Moderna joins Pfizer and announces upbeat results in its COVID-19 vaccine. Optimism is boosting stocks while the dollar is down across the board. AstraZeneca and Johnson&Johnson are also conducting late-stage tests. 

Investors seem to be shrugging off concerns about the spread of the disease in the northern hemisphere, and especially in the US. Hospitals in several states have hit capacity. 

US politics: President-elect Joe Biden clarified that he does not intend to impose a nationwide lockdown as he prepares to take office. The Democrat is set to announce additional roles in his administration, including Treasury Secretary. 

President Donald Trump seemed to recognize Biden's victory before retracting. The recount in Georgia is set to end in the next few days and is unlikely to change the result. Additional senior Republicans have urged him to allow a smoother transition and markets are focused on the runoff races which will determine control of the Senate. 

Chinese industrial output beat estimates with an annual increase of 6.9% in October, while Retail Sales disappointed with 4.3%. China, Japan, and 13 other Asia-Pacific countries signed the Regional Comprehensive Economic Partnership (RCEP) which gradually removes trade barriers. 

UK: Prime Minister Boris Johnson is isolating after coming in contact with an MP who tested positive for coronavirus. The PM has reported no symptoms and continues working.

Brexit negotiations continue and both sides aim to reach an agreement by Thursday when EU leaders convene. Some expect progress after Biden's election and the departure of Dominic Cummings, a senior adviser to Johnson who was the architect of the Vote Leave campaign. 

Christine Lagarde, President of the European Central Bank, and Richard Clarida, Vice-Chair of the Federal Reserve, will speak late in the day. 

Gold has been edging higher, but XAU/USD still trades below the $1,900 level. Bitcoin is trading above $16,000 again, resuming its gains after consolidating beforehand. 

See What you need to know about the dollar in the post-vaccine announcement world

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 


GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 


Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News