Market sentiment was mixed as the continuing increase in the number of coronavirus outbreaks overshadowed positive news about the vaccine, pushing the major currencies lower at the opening of the European session.
Risk aversion in the market, along with the uncertainty that Covid-19 has sparked on the global economy, has underpinned the US dollar's early revival as a safe-haven to trade higher than a set of major currencies.
The surge in the coronavirus case and several new blockages implemented in the United States have sparked speculation that the Federal Reserve (Fed) will step up its asset purchase program at the police station in December.
The uncertainty over the Covid-19 crisis also spurred safe-haven yen trading 1% higher this week to trade steady at 103.90 against USD not far from the 8-month high level it reached on Wednesday.
Sentiment during the market also pushed the euro currency to shrink lower apart from being crushed by the pressure of the Covid-19 crisis in Europe.
The market is now predicting the European Central Bank (ECB) will continue its asset purchase program (PEPP) which duly ended so that in June next year, to the end of 2021.
Meanwhile the pound continued to lose ground driven by Brexit uncertainty sparked by reports that European Union (EU) leaders are willing to go for a no-deal Brexit when the final date draws near.
