On Tuesday, the American Dollar Index measured against a basket of six major currencies on an average held steady a day after surging as much as 0.5 per cent over hopes of a Biden victory alongside optimisms related to Pfizer Inc.’s human trial results for its pandemic vaccine, as global FX markets appeared to be digesting the impacts of maverick moves of Monday.
In point of fact, the US President Donald Trump, whose term is set to expire in ten weeks, might be looking to add a number of layers on Iran sanctions alongside leaders of his Gulf allies alongside Israel, media headlines published earlier on Tuesday had unveiled, which had added to investors’ worries, while a remark from the next US President Joe Biden that the vaccine authorization process would follow scientific methodology, had sent a shockwave into the global FX markets, which had been anticipating at least a few shots as early as this year.
US Dollar holds steady, FX market flat as investors digest Monday’s moves
Amid worries over a number of vengeful moves from the departing US president Donald Trump which analysts believed would likely to be set in motion to make any policy change tougher for the next US President Joe Biden, the American currency remained flat against a basket of major currencies, while market participants appeared to be reluctant to push further in context of growing uncertainties on when or how a pandemic vaccine could be rolled out.
Quoting statistics, on Tuesday’s FX market wrap-up, the US Dollar Index, which had lost around 1.5 per cent since the Biden victory, remained flatlined, while the safe-haven Swiss Franc rose 0.1 per cent to $0.915 against its American peer.
Besides, the bloc’s single currency remained broadly dithered at $1.1813, though analysts were expecting an upswing towards 1.20 region over hopes of further policy easing from ECB as early as by December this year.
Besides, Australian Dollar fell roughly 0.3 per cent and New Zealand Dollar had been off 0.1 per cent, snapping its seven-day long streak of gains, against their American counterparts. Meanwhile, referring to an unprecedented notion of calmness in the global FX market, a senior FX analyst at Silicon Valley Bank, Minh Trang said on Tuesday, “Today is a little bit of a cool off from what we’ve seen in this past couple of days,” said Minh Trang, senior FX trader at Silicon Valley Bank. “I don’t mind a little bit of a breather. November has been very, very interesting. ”