Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

FOREX-Dollar softer as sentiment recovers on vaccine hopes and deals

Published 2020-09-14, 09:05 p/m
© Reuters.
EUR/USD
-
USD/JPY
-
ORCL
-
SOGN
-
NVDA
-
AZN
-
PFE
-
DX
-
USD/CNH
-
MIEM00000CUS
-
BNTX
-

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Hideyuki Sano

TOKYO, Sept 15 (Reuters) - The dollar dipped against riskier currencies on Tuesday as hopes for a COVID-19 vaccine and big corporate deals improved investor appetite for assets such as the yuan and the euro.

The dollar index =USD dipped to 93.029, slipping further from a one-month high of 93.664 touched last Wednesday, with its low last week of 92.695 seen as an immediate support.

The euro inched up to $1.1867 EUR= , having gained for four straight sessions until Monday.

Against the safe-haven yen, the dollar traded at 105.73 yen JPY= , having touched a two-week low of 105.55 yen on Monday.

Helping sentiment, AstraZeneca AZN.L resumed British clinical trials of its COVID-19 vaccine, one of the most advanced in development while Pfizer Inc (NYSE:PFE) PFE.N and BioNTech SE 22UAy.F proposed expanding their Phase 3 COVID-19 vaccine trial. was uplifting that Pfizer has made clear a target of vaccines. As risk assets bounced back, the dollar has lost momentum," said Kyosuke Suzuki, director of forex at Societe Generale (PA:SOGN).

Wall Street shares bounced back also as several multi-billion dollar deals -- including Nvidia's NVDA.O purchase of chip designer Arm and a deal between Oracle (NYSE:ORCL) ORCL.N and China's ByteDance on TikTok -- lifted confidence.

The British pound bounced back to $1.2851 GBP=D4 , following a fall of 3.66% last week, showing limited reaction after the UK government won an initial Parliamentary vote on its controversial bill to violate the Brexit deal with the European Union. traders said the currency looks vulnerable as the EU warns British Prime Minister Boris Johnson's bill would collapse trade talks and propel the United Kingdom towards a messy Brexit. the offshore Chinese yuan hit a 16-month high of 6.8053 yuan per dollar on Monday and last traded at 6.8098 CNH= .

China's retail sales and industrial output data for August due later in the day is its immediate focus.

The yuan's strength helped to lift MSCI emerging market currency index .MIEM00000CUS to a six-month high.

The Australian dollar slipped 0.2% to $0.7270 AUD=D4 , as odds narrowed for further monetary policy easing by the country's central bank. also look to central bank policy meetings in the United States on Wednesday and in Japan and Britain on Thursday.

In particular, this week's Federal Reserve meeting will be its first since Chairman Jerome Powell unveiled a shift toward greater tolerance of inflation, effectively pledging to keep interest rates low for longer.

Projections from Fed policymakers that inflation will remain below 2% in their economic forecasts, to be extended to 2023 this time, could strengthen expectations that interest rates will stay low for a long period of time, analysts say.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.