Wednesday, November 18, 2020

Pound currency continues to shine, USD is even more depressed!

 The US dollar continues to receive pressure by trading to its lowest level in more than a week as hesitation about the resurgence of the Covid-19 case around the world tests market optimism for positive developments regarding vaccines.

The global Covid-19 case rate continues to show an increase, where admission to hospitals in the United States has recorded a new record of over 76,000. Germany also reported 305 deaths, the highest recorded since April and outbreaks of 2 million in France.

Amid uncertainty over the global recovery, the safe-haven yen currency surged to a one-week high against the USD.

Following the decline of the US dollar, the euro currency has risen considerably with investors seeming to ignore the actions of Poland and Hungary in opposing the € 1.8 trillion stimulus package by the European Union (EU) to support the economic recovery that was triggered by the Covid-19 pandemic.

Meanwhile, the pound continued to climb higher towards the latest high level of 1.3300 on the back of the belief that the UK and EU will reach a post-Brexit trade agreement after The Telegraph reported France was willing to compromise on fisheries issues.

Meanwhile, UK inflation rates showed a pick-up in October, driven by higher prices for clothing and food as well as tightening of the coronavirus barrier in many regions.

The Asian currency is trading higher, with the New Zealand dollar continuing to head towards 2-year highs in the European session.