The US dollar decline on Monday, November 30 as for the first time since August this year, the EUR/USD currency pair is trading at 1.1971 after a drop of -0.2%. The DXY index however gained 0.2 percent to 91.87.
Promising information from pharmaceutical companies that produce COVID-19 vaccines has whetted risk appetite and driven investors outside the US to purchase riskier currencies and more lucrative properties, leading to a weakening of the dollar as a defensive currency.
On Monday, Moderna (+20.24%) announced that it plans to seek permission to expedite its registration of vaccines in the US and Europe. After additional studies, Moderna also revised the findings of the vaccine’s efficacy. So, based on the company’s statement, the vaccine showed 100 percent results in the event of serious illness. In addition, a response to the vaccine registration request is also awaited by Pfizer (+2.90%) and its partner BioNtech (+12.96%).
Not much support for the dollar has been offered by the increase in coronavirus cases around the world. Thanks to increasing hopes that the Fed can improve the economy well before the aforementioned vaccinations will “turn” the worsening situation. The monetary policy meeting of the Federal Reserve will be held on 15-16 December.
Dallas Fed President Robert Kaplan also said on Monday that tough months lie ahead, adding that the Fed is expected to adjust and extend its bond-buying program. However this problem may not be raised on the agenda at the December meeting.
The situation remains unresolved with the US presidential election held almost a month ago. Yesterday, Arizona held a public hearing on election fraud in the Senate, and now Arizona Republicans are drafting a resolution to question the certification of the state’s election results. The political situation in the United States has faded into the background against the backdrop of other headlines, but will certainly return to the front pages after the final resolution of the situation.
In the US, data on the Chicago business activity index was released. Thus the metric was marginally lower than the estimates of analysts and amounted to 58.2 points. In the US housing market, the index of incomplete sales reported a result of -1.1% month over month, which was lower than the consensus estimate of + 1.0%.