The US dollar was previously under pressure due to US economic data and market optimism over the effectiveness of the Covid-19 vaccine. But at the same time, risky currencies find it difficult to maintain profits due to market uncertainty.
The German administration has decided to tighten measures to curb the spread of the Covid-19 epidemic such as a curfew. The move is expected to curb German economic growth but it could curb the spread of Covid-19 and reduce the pressure on the health system, Angela Merkel said on Thursday.
According to analysts, the movement of the US dollar was initially under pressure after minutes of a meeting of the Federal Reserve signaled that they would strengthen their constitutional easing program at the next meeting in December.
The Federal Reserve (Fed) has discussed how quantitative easing programs can be developed to support recovery, including increasing purchase rates or extending bond periods.
Lee Hardman, a currency analyst at MUFG, estimates that the new indication could show the Fed is committed to continuing to buy at least $ 120 billion in securities. However, the size of the QE program does not necessarily increase.
The GBP continues to depreciate against the US dollar due to concerns over the direction of the Brexit trade negotiations. The Euro currency began to depreciate after reaching a 3-month high due to rising Covid-19 case concerns.
The Riksbank, which is Sweden's central bank, has stepped up its quantitative easing program and pushed for the depreciation of the crown.
