Dollar Bulls Return As Vaccine Optimism Lifts Sentiment

The beginning of the week in the foreign exchange market was boring, as the major pairs remained at their usual levels. However, preference was given to risk. World indices showed significant growth, with the growth being driven by encouraging news from the United States.

The FDA has approved the use of convalescent plasma to treat severe cases of the coronavirus, which is already being used in other countries.

Meanwhile, TikTok is suing the Trump administration over the latest decision by the President of the United States to ban the app in the United States, with the company saying it did not have a good chance of defending itself.

EUR/USD and GBP/USD posted moderate intraday gains but ended the day with losses, close to last week’s lows. Commodity-pegged currencies also lost ground and fell to the previous week’s lows against the dollar, somehow indicating that the dollar is still king.

There have been no breakthroughs.

Gold continued to fall. The precious metal price was $1,925 per troy ounce. Crude oil prices fell within the acceptable range.
Optimism on Coronavirus Treatment
Market sentiment appears to have improved, in part thanks to news of US President Donald Trump’s move to expedite UK vaccinations against COVID-19 ahead of the election. The Financial Times reported that one way is to use an “emergency authorization” in October for a vaccine being developed by AstraZeneca Plc and the University of Oxford. Usage will be based on results from a relatively small UK study.

The White House declined to comment on the report. A spokesman for the Department of Health and Human Services said reports of the use of EUA before the elections were “completely false.” Instead, the administration hoped to receive the vaccine in the first quarter of 2021. AstraZeneca also denied discussions with the government about an emergency permit.