Forex Today: Moderna announcement boosted equities, gold holds on to higher ground
Here is what you need to know on Tuesday, November 17:
The market mood was upbeat this Monday after Moderna reported that its experimental vaccine is 94.5% effective in preventing COVID-19. Moreover, this vaccine is expected to remain stable at standard refrigerator temperatures of 2° to 8°c for 30 days and could be stored at standard freezer temperatures of -20°C (-4°F) for six months.
The dollar enjoyed some short-lived demand right after Moderna news and ahead of the US opening, but gave up as the American session developed. European currencies had a limited bullish scope, with EUR/USD confined to familiar levels around 1.1850.
The GBP/USD pair settled below 1.3200, undermined by Brexit jitters. An EU official said that it might be too late already to clinch a trade deal, while UK PM Boris Johnson’s office said in a statement that they are confident that the UK will prosper if they fail to reach a trade deal with the EU.
Coronavirus contagions in the US and Europe are giving signs of easing on a daily basis, but health systems remain stressed. Speculative interest is focusing on vaccine hopes and already priced in a poor Q4 economic performance. The UK, Spain and the US are among those countries announcing vaccination programs that could begin as soon as December.
Gold plummeted intraday roughly $30.00 a troy ounce after the Moderna announcement, but quickly trimmed losses. It’s ending the day little changed around $1,887.00 a troy ounce.
Crude oil prices edged higher, underpinned by vaccine hopes, with WTI ending the day at $41.60 a barrel.
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FXStreet Team
FXStreet
