• US FDA authorises plasma treatment for covid patients & Trump considers fast tracking Oxford University vaccine candidate
  • Upbeat mood lifts Euro (EUR) after common currency fell -0.5% on Friday
  • 2nd wave fears could keep Euro rally in check after Spain reports 8000 new daily cases
  • US Dollar (USD) investors look to central bankers annual Jackson Hole meeting for further clues on monetary policy

After a slow start, the Euro US Dollar *(EUR/USD) exchange rate is edging cautiously higher pushing through US$1.18. At 07:30 UTC, EUR/USD trades +0.14% at US$1.1816, as the pair attempts to recoup some of Friday’s losses.

Coronavirus treatment news and vaccine optimism is boosting the mood in the market, overshadowing rising concerns over the spike in coronavirus cases on mainland Europe.

The Euro is trading on the front foot after the US FDA approved the use of blood plasma from recovered patients as a COVID treatment option for coronavirus patients in hospital. This is not the big vaccine news that the world has been waiting for but it is another step in the right direction.

Adding to the upbeat mood, President Trump is reportedly considering by-passing standard US regulation to fast track the Oxford University and AstraZeneca vaccine candidate for use in the US before the US Presidential elections in November.

These updates have served to re-focus investors’ attention on vaccine optimism and away from weak Eurozone PMI’s released on Friday. However, rising fears over second wave of infections in Europe could cap gains in the common currency.

France reported over 4000 new daily coronavirus cases on Sunday, its largest one day jump since mid-April. Spain also recorded an alarming rise in Covid cases with 8000 new infections being recorded on Friday.  The rise in infections in Europe come as travel increases as people go on holidays and attend summer gatherings.

There is no high impacting data due for release today. Instead investors will turn their attention towards German GDP and German IFO business sentiment index data due tomorrow.

For US Dollar trades, the central bankers annual meeting at Jackson Hole will be the main focus this week. Investors will be hoping for further clues from Federal Reserve Chair Jerome Powell over the direction of monetary policy.

 

 

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