- The US dollar remains sideways around 1.3000 after rising from lows of 1.2930
- Markets consolidate with investors taking in the news about the Pfizer vaccine.
The recovery of the US dollar from multi-month lows at 1.2930 on Monday it has been limited to the 1.3050 area today and the pair is struggling to confirm above 1.3000, trading virtually unchanged on the daily charts.
USD Stays Flat with Markets Taking in COVID-19 Vaccine News
The dollar is moving sideways against its major peers on Tuesday as the market takes in Monday’s news of the promising results of Pfizer’s coronavirus vaccine. The pharmaceutical company announced yesterday that the results of its large-scale tests have revealed that the vaccine is 90% effective, raising hopes for an earlier-than-expected cure for the pandemic.
The Canadian dollar appreciated strongly in the wake of news of a coronavirus vaccine, pushing the pair below 1.2950 for the first time in two years. Commodity-sensitive CAD advanced 0.8% against its North American counterpart driven by a 10% rebound in crude prices after news of a coronavirus vaccine eased fears about the impact of lockdowns on the world demand for oil.
The pair managed to trim losses later on, as the risk rally boosted US Treasury yields, prompting a strong USD rally. The US dollar index closed the day with a rise of 0.65% and managed to regain ground lost after having fallen 1.72% in the previous week.
Credits: Forex Street
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