The US dollar started trading earlier in the week trading weaker against most major currencies in the Asian session.
Positive news about vaccines costing safe-haven dollars. The United States is expected to receive the Covid-19 vaccine a day after the U.S. Food and Drug Administration (FDA) approved it in mid-December.
Britain, meanwhile, may approve the Covid-19 vaccine that Pfizer co-produced with BioNTech this week.
At the same time, however, a total of 11,752 new deaths were reported on Friday, the highest number recorded since the pandemic began. This worsening pandemic crisis indicates the need for more stimulus to support economic recovery.
Several sanctions implemented in the United States have led to speculation that the Federal Reserve (Fed) will loosen monetary policy further, especially when a deal in fiscal stimulus is still far from being reached.
The Aussie dollar and the kiwi dollar traded higher in the Asian session, where the kiwi dollar surged to its latest high almost 2 years after New Zealand retail sales data showed a favorable surge in the third quarter of 2020.
The euro also recorded a temporary increase in market focus on the release of the European Zone manufacturing and services PMI data this afternoon which is expected to show a slight decline in growth in November.
The pound sterling continued to strengthen, supported by the hope that the UK and EU would reach an agreement on trade agreements. The market is now awaiting an announcement on the progress of Brexit negotiations this week.
