Pat Trader's Forehead Watch GBP Suddenly 'Drop'

 The US dollar continued to trade stable as the market was divided between good news about the Covid-19 vaccine and the continuing increase in cases of coronavirus infection that are becoming increasingly alarming.


Hospital admissions due to Covid-19 increased in the United States and exceeded the highest level recorded since April with the number of cases and deaths continuing to show an increase.


Cases of infection in Europe continue to rise, with Italy imposing new sanctions on affected areas and also considering closures across the country.


Meanwhile, the United States' leading infectious disease specialist, Dr Anthony Fauci, said the Pfizer vaccine may be available as early as December after receiving approval from the U.S. Food and Drug Administration (FDA).


The dollar index which measures the strength of the greenback dollar against a basket of major currencies traded up 0.1% at 92.83. The euro depreciated below the 1.1800 price level following the rise of the USD.



The pound, meanwhile, continues to rise to a two-month high against the US dollar supported by positive developments in Brexit trade negotiations and the Covid-19 vaccine.


However, the currency declined again after Reuters reported that the UK and the European Union (EU) may not be able to reach a Brexit deal before the deadline in the middle of this month due to issues still plaguing talks between the two sides.


The New Zealand dollar also traded higher following the prospect of a negative interest rate implementation by the Reserve Bank of New Zealand (RBNZ) fading after the central bank stated interest rates would remain at 0.25% until next year.