- Euro (EUR) has struggled to rally on Pfizer’s vaccine news this week
- Christine Lagarde could provide clues over growth expectations & stimulus prospects
- US Dollar (USD) trades steadily on Veterans Day
- US new covid cases remain above 100k for 7th day
The Euro US Dollar (EUR/USD) exchange rate is ticking mildly lower after trading flat on Tuesday. The pair settled in the previous session at US$1.1814 approximately in the middle of the daily traded range. At 09:15 UTC, EUR/USD trades -0.05% at US$1.1808, at the lower end of the daily traded range.
The mood in the market remains relatively buoyant after Monday’s vaccine announcement from Pfizer. However, the Euro has been one of the weakest major currencies versus the US Dollar in the wake of the game changing news.
The vaccine news comes as covid cases in the old continent continue to surge. Italy imposed additional lockdown restrictions on more regions and is said to be contemplating a national lockdown, following in the footsteps of France & Germany.
Yesterday the Euro came under pressure following dismal ZEW German sentiment data. The figures showed that German investor morale fell by more than expected in November amid rising covid cases and a national lockdown which made the outlook more uncertain. German investors economic sentiment tumbled to 39 in November, down from 56.1 in October. The print missed forecasts of 41.7. Fears are rising that the Eurozone’s largest economy could head back into recession.
Today investors will be looking towards a speech from ECB President Christine Lagarde for clues over the outlook fir economic growth in light of a vaccine and the prospect of additional stimulus.
The US Dollar is edging mildly higher versus its major peers on Wednesday. It is Veterans Day in the US and the bond market is closed, this will limit activity in the foreign exchange market considerably. Additionally there is no US economic data to drive the USD.
Instead markets will continue digesting Pfizer’s vaccine news, as cases in the US continue to surge. The US recorded its 7th straight day of new covid infections topping 100,000. Meanwhile hospitalisations have risen to almost 62,000.