US dollar
The dollar edged lower in early European trade Tuesday, as the surge in Covid-19 cases in the U.S. prompted more restrictions and as worries about a smooth transfer of presidential power mount.
Moderna Inc released details of a 94.5% efficacy rating for its vaccine candidate, but there is still a long way to go before delivery can be expected. Successful tests of candidates from both Moderna and Pfizer Inc have increased the chance of a faster than expected U.S. economic recovery, Federal Reserve Vice Chairman Richard Clarida said on Monday.
EUR/USD climbed 0.1% to 1.1854, USD/JPY fell less than 0.1% to 104.55 while GBP/USD rose 0.12% to 1.3212, following reports that the U.K. and the European Union could reach a Brexit divorce agreement by the beginning of next week.
Expectations are growing that OPEC+ will suggest a postponement of the planned January increase in oil output for at least three months to support prices as the pandemic continues to hit demand. U.S. crude futures traded 0.2% higher at $41.40 a barrel, while the international benchmark Brent contract rose 0.6% to $44.08.
Gold was down on Tuesday morning, boosted by rising concern over the number of COVID-19 cases globally offsetting optimism over the latest vaccine development. A weaker dollar also gave the yellow metal a minor boost.
Looking forward, amid an absence of any data releases from the Eurozone, the focus would be on the speech by European Central Bank’s policymaker De Guindos. Later, in the NA session, the US Retail Sales for October at 13:30 GMT will be closely watched for fresh impulse. Jerome Powell, Chairman of the Federal Reserve, will speak later in the day. Oil investors could take hints from the crude oil supply data from the American Petroleum Institute, due later in the day.