Fresh positive news from promising vaccine trials offset concerns around the stubbornly high global infection rate and tighter restrictions.
Pfizer announced that the final results from the late-stage trial of its COVID-19 vaccine showed it was 95% effective. Τhe company would apply for emergency U.S. authorisation within days.
Also, Moderna released data, according to which its vaccine is 94.5% effective against coronavirus.
Surging cases have driven record hospitalisations and fresh restrictions on gathering in the United States. At the same time, new outbreaks vex authorities in Japan, South Korea and Australia.
In other news, Fed Chair Jerome Powell said on Tuesday there was “a long way to go” to economic recovery. Further, the retail sales report released by the U.S. Commerce Department showed spending decelerating.
In Europe, Poland and Hungary are blocking the EU’s stimulus package to revive an economy depressed by the COVID-19 pandemic. Both countries vetoed the adoption of the 1.1 trillion- euro 2021-2027 EU budget and the 750 billion-euro recovery fund. The budget law included a clause that makes access to money conditional on respecting the rule of law. In the US, the fate of a federal stimulus package is looking bleak.
On the Brexit front, UK Business Secretary said Britain hoped to get a Brexit trade deal. But he added that the EU had to understand it was dealing with a sovereign nation.
British inflation picked up by more than expected in October, pushed higher by prices for clothing and footwear and food.
Canada’s annual inflation rate accelerated to 0.7% in October, up from a year-over-year increase of 0.5% in September.
START TRADINGForex – Promising vaccine trials optimism boosts markets
A steady U.S. dollar held commodity currencies in check on Wednesday. Worries about rising coronavirus cases tempered optimism around promising vaccine trials. Further, the still-high infection rate globally would likely cap recent market gains.
Positive news from vaccine trials had little effect on the dollar amid concern more monetary stimulus is to be expected. While the Pfizer news helped the dollar pull off its lows it was not enough to drag it into positive territory. The dollar index eased 0.1% to 92.327 after dropping as low as 92.207, its lowest level since Nov. 9.
Amid the uncertainty over the global economic recovery, the safe-haven Japanese yen climbed to a one-week high. At 103.95 per dollar, the yen came back to its Nov. 9 levels, recouping much of the losses it suffered last week.
The Australian dollar slipped 0.3% on Tuesday and was a shade weaker still on Wednesday at $0.7288.
The New Zealand dollar was 0.1% softer at $0.6889.
The euro was rising about 0.1% at $1.186.
Sterling was rising about 0.2% to $1.3277, near peaks reached in early September. The pound was last trading up 0.3% at $1.3283. But the British currency was flat against the euro at 89.44 pence. It was also neutral versus the Japanese yen at 138.08.
U.S. crude futures and Brent crude futures both up just over 1.8%, bolstered by hopes OPEC will delay a planned increase in production.
Safe-haven gold, meanwhile, was down 0.5% at $1,868.6 an ounce, with U.S. gold futures also slightly lower.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money