The Euro recorded an outstanding performance on Tuesday and was on track to reach its biggest gain for three consecutive days this year. But things stalled for a while as investors and traders reduced their selling positions after Moderna's CEO stated the Covid-19 vaccine may not be effective against the Omicron variant.
Market risk appetite began to wane on the second day of this week after comments from Moderna reinforced expectations that the economy is likely to grow slowly and it will take longer to return to normal.
This is clearly reflected in the strengthening of the Euro currency was also affected when traders began to reduce their bets related to the expectation that the US Federal Reserve will raise interest rates faster than others.
The Euro traded 0.5% stronger on Tuesday against the US dollar on the $ 1.1367 market up 1.3% in the last three sessions. The single currency posted its biggest three-day consecutive gain since December 2020.
On the other hand, the yen also strengthened by 0.6% against the US dollar since early October at 112.68 yen.
Markets also expressed concern that global economic growth could be disrupted based on Moderna CEO’s comments.
The Australian dollar was down 0.65% to a new 12 -month low of $ 0.7093, and the New Zealand dollar was down 0.6% to $ 0.6783. The US dollar index was down 0.70% to trade 95.660. The market is focused on the development of new variants that are seen to have the potential to impact the market.
