US Dollar

USD Recovers Ground as Market Vaccine Rally Softens

Pound News: Brexit Deadline Uncertainty Weighs on GBP

As the coronavirus pandemic has hurt Britain’s services-focused economy particularly hard, this week’s news of major vaccine progress has notably boosted the UK outlook.

However, the Pound came under pressure renewed pressure during today’s session amid reports that an EU summit on 19 November needs to be seen as the deadline for a draft Brexit deal.

Key UK GDP data will be published tomorrow. Will a solid third quarter growth reading boost hopes that Britain will weather the second coronavirus lockdown?

Euro News: Eurozone’s Coronavirus Situation Continues to Worsen

While the Euro is also benefitting from coronavirus vaccine news, the Euro has been resilient amid the pandemic so far. As a result, it has less room to recover and more to lose from the Eurozone’s currently worsening coronavirus situation.

As the European Central Bank (ECB) signalled again that more easing is likely to combat the impact of the pandemic, the Euro slipped today.

German inflation data due tomorrow could further dampen the Euro if it disappoints, while more comments from ECB officials could also weigh on EUR sentiment.

US Dollar News: Safe-Haven Demand Lingers as Coronavirus Vaccine Concerns Persist

This week’s coronavirus vaccine news has led to a surge in demand for riskier currencies. However, as uncertainties about the vaccine persist, appeal in the safe-haven US Dollar increased.

Markets are concerned about how the vaccine could be efficiently distributed in the US, keeping safe-havens buoyed.

Tomorrow will see the publication of US inflation rate news, but it is unlikely to be hugely influential. The US Dollar’s focus will remain on market sentiment and safe haven demand for now.

Canadian Dollar News: CAD Slipping with USD despite Oil Price Rebound

Prices of oil, Canada’s biggest export, have been rebounding this week in reaction to coronavirus vaccine hopes. Despite this though, the Canadian Dollar has been falling against the Pound.

No notable Canadian data is due for the remainder of the week, which will leave CAD to be driven by shifts in market sentiment and US Dollar strength.

Australian Dollar News: Markets Pull Away from AUD as Vaccine Rally Cools

Australia had already been handling the coronavirus pandemic well. As a result, the Australian Dollar’s reaction to the coronavirus vaccine news was limited.

GBP/AUD continues to climb as Sterling benefits from the news more and the market’s rally softens.

Australia’s latest consumer inflation expectation report is due tomorrow, but is likely to be overshadowed by fresh developments in politics and the coronavirus.

Upcoming Data

Thursday, 12th November

00:00    Australian Consumer Inflation Expectations

07:00    German Inflation Rate

07:00    UK Trade Balance

07:00    UK Growth Rate

07:00    UK Manufacturing and Industrial Production

10:00    Eurozone Industrial Production

13:30    US Inflation Rate

16:45    Speeches from Major Central Bank Bosses