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FOREX-Higher-risk currencies soar on Biden win, promising COVID-19 vaccine

Published 2020-11-09, 10:53 a/m
EUR/USD
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USD/JPY
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USD/CHF
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AUD/USD
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USD/SEK
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PFE
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DX
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* Aussie dollar skyrockets vs Japanese yen

* Dollar index stays relatively calm

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Recasts, adds latest COVID-19 news, comments, updates prices)

By David Henry

NEW YORK, Nov 9 (Reuters) - Increased risk appetite buoyed trade-related currencies amid more optimism for the world economy on Monday after Joe Biden clinched the U.S. presidency and Pfizer Inc (NYSE:PFE) PFE.N said its experimental vaccine was more than 90% effective in preventing COVID-19.

The Japanese yen and Scandinavian currencies were among the biggest movers, while the offshore Chinese yuan hit its strongest in 28 months.

The safe-haven yen gave way to the new optimism, weakening to its lowest level in more than two weeks, while the yuan strengthened on confidence in more trade.

A Biden presidency is expected to shore up international trade relations and the prospect of a successful coronavirus vaccine is seen as a major tailwind, with global cases continuing to rise. vaccine news "provided just a tremendous boost for risk appetite," said Ed Moya, senior market analyst at foreign exchange broker OANDA. was a lot of nervousness in investors' expectations for these vaccine trial results, and the first one out of the gates had an amazing 90% effective rate, far exceeding the consensus," Moya said. "The last remaining risk event of the year, it seems like it has been taken off the table. We're seeing a big reflation trade here."

Bond yields soared in the United States and Europe and major stock indexes gained as much as 4%. vaccine news, said Simon Harvey, currency analyst at broker Monex Europe, "helped boost global growth expectations which took a substantial knock only weeks ago with second wave concerns."

Also benefiting were the Norwegian and Swedish crowns and other currencies which react more quickly to economic changes.

The Swedish crown rose to a 28-month high against the dollar and the euro. It traded at 8.6014 SEK=D3 versus the U.S. dollar and reached a 22-month high against the euro EURSEK=D3 .

Its Norwegian counterpart strengthened 1.54% against the dollar and rose against the euro as well, to touch two-month highs against each. NOK=D3 EURNOK=D3 .

The Australian dollar was up 2.5% at 76.94 against the Japanese yen, a seven-week high AUDJPY=D3 . The yen also fell 1.6% against the U.S. dollar to 105 JPY=EBS .

The offshore Chinese yuan CNH=EBS was not far behind, hitting a peak of 6.5501 against the dollar and last up 0.12% at 6.6012.

The Canadian and Australian dollars both rose as much as 0.8% versus the U.S. dollar, with the latter AUD=D3 hitting a seven-week high and the former a nine-month high CAD=D3 .

Amid those changes, the dollar stabilised against a basket of currencies =USD , having touched a 10-week low of 92.12, and was last up 0.4% at 92.561.

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Currency bid prices at 10:17AM (1517 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=EBS

$1.1860

$1.1877

-0.13%

+5.80%

+1.1920

+1.1853 Dollar/Yen

JPY=D3

105.2250

103.2800

+1.91%

-3.10%

+105.3800 +103.3000 Euro/Yen

EURJPY=

124.78

122.69

+1.70%

+2.32%

+125.1300 +122.7000 Dollar/Swiss

CHF=EBS

0.9105

0.9003

+1.14%

-5.90%

+0.9110

+0.8985 Sterling/Dollar GBP=D3

1.3163

1.3150

+0.11%

-0.75%

+1.3206

+1.3121 Dollar/Canadian CAD=D3

1.2958

1.3064

-0.77%

-0.22%

+1.3062

+1.2928 Aussie/Dollar

AUD=D3

0.7309

0.7261

+0.67%

+4.17%

+0.7340

+0.7267 Euro/Swiss

EURCHF=

1.0797

1.0686

+1.04%

-0.49%

+1.0799

+1.0681 Euro/Sterling

EURGBP=

0.9007

0.9023

-0.18%

+6.54%

+0.9048

+0.9005 NZ

NZD=D3

0.6822

0.6773

+0.74%

+1.40%

+0.6854

+0.6785 Dollar/Dollar

Dollar/Norway

NOK=D3

9.0095

9.1490

-1.54%

+2.69%

+9.1620

+8.9690 Euro/Norway

EURNOK=

10.6860

10.8500

-1.51%

+8.62%

+10.9079

+10.6669 Dollar/Sweden

SEK=

8.6014

8.6393

-0.60%

-7.98%

+8.6509

+8.5572 Euro/Sweden

EURSEK=

10.1997

10.2616

-0.60%

-2.57%

+10.2816

+10.1833

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