AstraZeneca’s Vaccine Announcement Weakens US Dollar - Forex News by FX Leaders
AstraZeneca's Vaccine Announcement Weakens US Dollar

AstraZeneca’s Vaccine Announcement Weakens US Dollar

Posted Tuesday, November 24, 2020 by
Arslan Butt • 1 min read

Early on Tuesday, the US dollar has weakened to trade near three-month lows as the risk appetite in global markets received a boost over reports about one more promising COVID-19 vaccine, even as uncertainty around the US presidential election eased. At the time of writing, the US dollar index DXY is trading around 92.39.

During the previous session, markets cheered news of AstraZeneca’s vaccine which reportedly has an effectiveness of around 70% in pivotal trials and can go up to becoming 90% effective. The latest development follows successful reports from Pfizer/BioNTech and Moderna that have also announced vaccines against COVID-19 with over 90% effectiveness.

The safe haven appeal of the US dollar suffered further after President Donald Trump allowed the GSA to start the process of transition to President elect Joe Biden and his team. This comes after weeks of uncertainty over the results of the presidential election that Trump has been challenging in court and refusing to concede his defeat.

The US dollar is also trading bearish over reports that Biden was likely to select former Fed chair Janet Yellen as his Treasury Secretary. Yellen has been vocal about the need for more stimulus to offset the damage caused to the US economy by the coronavirus pandemic, increasing the possibility of more fiscal stimulus measures being announced soon.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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