The start of trading in the Asian session today saw the major currencies rise again after dropping drastically during the previous New York session which also saw a significant surge in the greenback dollar.
This is sure to surprise investors who are excited about the positive developments on the Covid-19 vaccine that pushed most major currencies higher on Monday.
However, the shock of the US manufacturing and services PMI data, which grew at the fastest pace in November despite facing an increase in coronavirus cases and forcing the country to impose some new sanctions, has driven a drastic surge for the US dollar.
In addition, the significant fall in major currencies in the previous session may also be due to investors wanting to take profit after it traded high during the Asian and European sessions.
The euro managed to hit the 1.1900 price level against the USD during the New York session despite mixed data readings plunging lower following the resurgence of the greenback dollar.
The pound sterling also showed a decline but remained strong trading supported by strong PMI data and confidence in Brexit trade negotiations will be achieved this week.
In the Asian session, the currency is at risk of making gains following rising optimism over reports that President-elect Joe Biden is expected to appoint former Federal Reserve (Fed) chairman Janet Yellen as the new US Treasury Secretary.
Supporting market sentiment, President Donald Trump officially allowed a transition for Biden to take over the White House, signaling that political uncertainty was waning.
