The Euro continued to soar to a 3-month high on Tuesday as it was driven by stimulus package expectations from the United States and the recovery of several sectors of the economy that fueled an increase in risky currency appetite.
In the period that also saw the strengthening of the New Zealand dollar is strengthening to its highest level since June 2018. Investors are currently more likely to choose a risky currency as vaccine trials show high efficacy.
The increase in Covid-19 transmission cases does not provide much support for US dollar holdings. Speculation that the Federal Reserve (the Fed) will announce an economic stimulus package as soon as possible before vaccine distribution.
The Fed will convene on December 15 and 16 to set economic policies. Ahead of the event, Federal Reserve (Fed) Chairman Jerome Powell will testify before the Senate Banking Committee tonight.
Powell and Treasury Secretary Steven Mnuchin will testify on the CARES Act, which Congress provides a $ 2 trillion stimulus package for Covid-19 assistance.
The pound sterling recorded a drastic jump to the price level of 1.33500 as uncertainty over Brexit trade negotiations continued to haunt the market.
The Euro continued to strengthen with a strengthening of 0.50% against the US dollar to the 1.1986 exchange rate.
European zone inflation remained at a negative level for the fourth consecutive month in November, raising concerns of the European Central Bank that a drop in prices could lead to deflation.
