Thursday, November 12, 2020

Will This Speech by the Central Bank Trio Shake the Market?

 The increase in cases of coronavirus worldwide has overshadowed market expectations for vaccines, prompting major currencies to trade lower on Thursday.

Coronavirus cases in the United States reached record highs above 144,000 and hospital admissions exceeded 65,000 for the first time while mortality also showed an increase.

Italy, meanwhile, is under pressure to carry out closures across the country following an increase in cases of infection.

Meanwhile, more announcements about the Covid-19 vaccine are expected to be made in the coming weeks, especially Moderna which uses the same technology as Pfizer in its vaccine testing.

The euro began to rise at the start of the European session with market focus now on panel discussions on monetary policy at the European Central Bank (ECB) Forum which will involve ECB President Christine Lagarde, Federal Reserve Chairman Jerome Powell and Governor of the Bank of England (BOE). ) Andrew Bailey at midnight tonight.

The Aussie dollar continued to depreciate due to uncertainty in the market and was also pressured by China's action to stop the import of counterfeit timber from Victoria which would definitely have a big impact on the country's economy.

The kiwi dollar also depreciated, erasing almost all of the profits earned from the central bank's hawkish statement indicating a negative rate may not be implemented until next year.