Vaccine development drives the US dollar down
US dollar edged lower in early trading session in Europe. The currency continued to drop sharply, as the progress of the coronavirus vaccine made riskier investments more attractive.
By 06:45 GMT, the US Dollar Index lost 0.2% and stood at 99.438, falling from yesterday’s highs. USD/JPY still went up, gaining 0.1% and 1.0738.
The markets have been galvanized by the news about the coronavirus vaccine, developed by Moderna. The first tests of the drug showed positive results. If further work continues to be successful, the world might get a vaccine faster than expected.
Forex markets are also waiting for the testimony of Jerome Powell - the Chairman of the Federal Reserve. He will make a statement for the Banking Committee of the US Senate later today. Powell is expected to speak on the subject of negative interest rates and once again refute the possibility of introducing them.