The U.S. dollar was reportedly weaker in early European trading on Monday. Positive economic data from Asia boosted optimism about the global recovery and even warned of a new covid-19 case in the country. Many daily cases have been reported to date.
The index of USD, that tracks the greenback against six currencies, was down as much as 0.2% at 92.597. EUR/USD increased 0.1% to 1.1848. Elsewhere, USD/JPY fell as much as 0.1% to 104.53. Meanwhile, the AUD/USD pair climbed as much as 0.3% to 0.7287.
Economic figures from Japan show the growth of the world's third-largest economy. This situation helped him out of recession, with annual economic growth of 21.4% in the third quarter. It can gradually be said to recover from the damage caused by the coronavirus pandemic.
Asia's 15-Nation Trade Agreement
According to the data, China's industrial results rose faster than expected in October. What is interesting is that retail sales are now recovering and showing positive developments. Still, in the Asian zone, fifteen countries signed the Regional Comprehensive Economic Partnership trade deal on Sunday.
This adds to the appetite for risk amid expectations of increased global trade, which was previously unstable due to strained relations between the US and China. However, this optimism should be taken into account with the increasing number of Covid-19 cases to date.
According to the latest data, there were more than 54 million cases worldwide and 1.3 million deaths as of November 16. Data from Johns Hopkins University shows that of these, 11 million cases are found in America alone. This fact can certainly affect global market conditions.
Interestingly, the medium-term outlook could be bright due to vaccine news. However, the number of cases is soaring over the next 6-8 weeks and a potential nationwide lockdown in the US is certainly not good news for all market participants. iTs was conveyed by analysts at Nordea.
The Central Bank's solution is highly anticipated
According to him, the central bank should loosen its rules again in December. This step must be taken to reduce the economic damage caused by the virus. What's more, no one knows when this pandemic will end. The vaccines still take a long time before mass production.
Elsewhere, the GBP/USD currency pair was trading 0.2% higher at 1.3215. Meanwhile, EUR/GBP fell by 0.1% to 0.8968. Investors are now continuing to focus on ongoing Brexit talks between the UK and the EU, especially following the resignation of Dominic Cummings.
Dominic himself is an adviser to British Prime Minister Boris Johnson and a supporter of a "hard" Brexit. Previously, it was known that Brexit meetings always failed in reaching a word of agreement. There are some points that are so difficult to find a middle ground.
That condition makes the market unstable. Most people really hope that this Brexit can find a deal. It will make certain rules are clearer when the British have been separated from Europe. This condition is better.
Gold Commodities Rise
Gold is reportedly raising due to the increase in coronavirus infections globally. This situation re-ignited concerns about economic losses due to the pandemic. Meanwhile, skepticism over the potential reach of the COVID-19 vaccine has also increased the safe-haven metals.
The spot of gold was about to rise as much as 0.5% to $1,884.76 an ounce. However, gold bullion is still in its worst position since late September. Indeed the commodity fell 3.4%. The cause was early euphoria over an effective vaccine from Pfizer early last week.
Meanwhile, U.S. gold futures closed the final up 0.7% to $1,886.20. Jim Wykoff, a senior analyst, said they had found COVID-19 raging in the U.S. and uncertainty surrounding it. Potential economic damage may also occur in the coming months.
