Dollar and Euro Stay Mild As Gold Pullback Continues

Dollar and Euro Stay Mild As Gold Pullback Continues

There was a mixed sentiment on the risks of coronavirus, as markets watched the pandemic and stocks trade as if it were a post-covid world.

As for the euro, most of the trading took place through the dollar, but European policy may again prove problematic for the single currency.

While the US dollar slipped from its previous lows following housing data, the dollar was still in its fifth straight decline as the Pfizer news gave investors the willingness to take risks. The DXY dollar index fell to 92.21 but has since recovered somewhat to 92.37.
Commodity currencies are somewhat softer, along with the dollar.

Technically, though, Gold’s pullback could be a sign of a comeback in the Dollar. On the other hand, the Swiss franc and the yen are more stable along with the sterling. At the mid-week, the dollar is the weakest at the moment, followed by the Swiss franc. The New Zealand dollar is the strongest, followed by the yen. But in general, major pairs and crosses are mostly limited by last week’s range.

The dollar and the euro are trading slightly lower today in relatively weak consolidation markets. Yen and Kiwi, on the other hand, are more powerful. There is no clear sign of a range breakout yet.
COVID-19 and Fading Vaccine News Impact
At this point, financial markets as a whole have turned into consolidation as vaccine news continues to fade. Pfizer has provided further positive news on coronavirus vaccines. The final results of the later stage of the study showed an efficiency of 95%. The company is ready to apply for an emergency permit in the United States within a few days. However, investors have been showing a cool head so far.

According to data compiled by Johns Hopkins University, the U.S. coronavirus death toll is currently 250,029, which is a higher death toll than any other country in the world, and markets are paying close attention to this.

Globally, more than 56 million people have been infected and over 1.3 million have died, according to Johns Hopkins.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.