The market mood remains damp amid the sell-off in tech stocks, Brexit issues, the US fiscal impasse, and AstraZeneca’s halt of its coronavirus vaccine trial. The dollar and yen are gaining ground while stocks and oil are on the back foot.
AstraZeneca paused its Phase 3 COVID-19 vaccine trial after one person participating in the experiment fell ill with inflammation in the spinal cord. The immunization project is considered one of the most advanced among eight that are in the final testing phase.
The news exacerbated the falls in stocks and kept the safe-haven dollar and yen bid. Pharma firms involved in developing vaccines pledged not to seek emergency approval before vaccines proved to be safe.
USD/JPY remains depressed below 106.00 despite the bounce from weekly lows, after AstraZeneca halted its COVID-19 vaccine trials. Broad US dollar strength cushions the downside in the spot.
GBP/USD is trading below 1.30, amid Brexit woes and due to rising UK coronavirus cases. Prime Minister Boris Johnson is considering slapping a night-time curfew on several cities.
EUR/USD is trading below 1.18 ahead of the European Central Bank’s meeting on Thursday. The ECB is set to leave its policy unchanged and may comment on the exchange rate and the Federal Reserve’s dovish shift.
Oil prices remain on the back foot, with WTI changing hands at below $37. The general risk-off mood and less buying from China are weighing on the black gold. Gold has been stabilizing around $1,930, shaking off its correlation with equity markets.
In absence of any major market-moving economic releases, either from the Eurozone or the US, risk mood will be the main market driver.
U.S Dollar and Yen gaining ground amid Risk-Off Mood
Published on 2020-09-09 07:44
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