At the start of a brand new trading week, the US dollar is trading range-bound, as hopes about a possible vaccine against COVID-19 by Pfizer were offset by worries about the economic impact of the present second wave of the pandemic. At the time of writing, the US dollar index DXY is trading around 92.54

The past week saw markets trading with a strong risk-on sentiment, sending the US dollar also higher as traders moved away from safe haven currencies like the JPY and CHF. However, towards the end of the week, the mood returned to one of caution as fresh cases being reported continued to increase, especially across the US and Europe.

The US has seen its total case load exceed 11 million by Sunday, a week after it crossed 10 million. Meanwhile, in Europe, the rise in cases has forced governments to reimpose more restrictions and lockdowns, raising fears about the damage to the economy and sending the Euro weaker against the greenback.

The US dollar has also steadied as the uncertainty around the US presidential election recedes, with emerging reports making Biden’s victory clearer. On Sunday, President Donald Trump also seemed to concede his defeat but maintained that he would continue his legal fight against the election results.