Forex Today: Dollar rises as current virus spread outweighs vaccine hopes, central bankers eyed

Yohay Elam FXStreet

Here is what you need to know on Thursday, November 12:

The market mood has soured with stocks under pressure and the dollar rising. Concerns about the spread of the virus outweigh vaccine hopes. US inflation and jobless claims, and a panel including from Powell, Lagarde, and Bailey are eyed.

US coronavirus cases have hit a record high above 144,000 and hospitalizations topped 65,000 for the first time. Deaths are also on the rise as the winter wave is worsening. Germany's caseload has stabilized but mortalities are on the rise while Italy is under pressure to slap a nationwide lockdown.

Vaccine: Moderna may join Pfizer in announcing interim results from its coronavirus vaccine Phase 3 trial, perhaps as early as next week. Top US epidemiologist Anthony Fauci said he would be surprised if Moderna fails to report success as both firms use the same mRNA technology. Early in the week, Pfizer announced a 90% efficacy. AstraZeneca and Johnson&Johnson also follow the same approach.

US elections: President-elect Joe Biden continues working on his transition, announcing his appointee for Chief of Staff. President Donald Trump refuses to concede tweeted "we will win." Georgia will begin a manual recount, yet experts do not expect Biden's lead to change there. The Democrat is also ahead in several other states as counting continues.

Investors – and politicians in Washington – are focused on the two Senate runoff races in Georgia in early January that will determine control of the upper chamber.

Brexit: EU and UK negotiators are set to miss the self-imposed November 15 deadline and hope to reach an accord next week. Fisheries, state aid, and trade around Ireland remain thorny issues.

UK: Gross Domestic Product grew by 15.5% in the third quarter, marginally below estimates. Britain is under lockdown, and while the case curve is flattening, mortalities have hit the grim 50,000 milestone.

US Consumer Price Index figures for October are set to show relatively subdued inflation, in line with the trend in previous months. Weekly jobless claims carry expectations for another drop.

See US Initial Jobless Claims and CPI Previews: The linkages are gone

European Central Bank President Christine Lagarde will host Federal Reserve Chairman Jerome Powel and Bank of England Governor Andrew Bailey in a panel at an ECB forum. Comments about additional stimulus may rock markets.

Cryptocurrencies have resumed their gains, with Bitcoin nearing the $16,000 level and Ethereum holding onto high ground.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.