Review of the dollar, euro, pound, yen, aussie and gold prices for December 30, 2020


The European currency rallies against the US dollar during today’s Asian trading session, hitting record highs since April 2018. The instrument is supported by an increasing demand for risk at the end of the year amid the approval of a new financial aid package in the US. In addition, investors are pinning high hopes on allowing AstraZeneca’s coronavirus vaccine to be marketed in the UK, reasonably suggesting that increased market supply will help more citizens get vaccinated more quickly. In turn, the trade agreement reached last week between the EU and the UK provides moderate support to the single currency.


The British pound is noticeably strengthening against the American currency during today’s morning session, developing the “bullish” signal formed the day before. After a hesitant start to trading last Monday, the pound nevertheless found the strength for further growth, receiving support from weak positions in the US dollar and increasing demand for risk. Additionally, the British currency is supported by rumors that the UK may soon approve an emergency drug from AstraZeneca. This news had a noticeable impact on market sentiment, given that the coronavirus infection is currently spreading throughout the country at a record pace. Investors fear that the UK authorities will be forced to impose new tough restrictions to try to “flatten the curve” of the rise in the incidence.


The Aussie is showing sharp gains against the US currency in today’s trading, hitting record highs since June 2018 and enjoying strong demand amid a notable increase in risk appetite at the end of the year. Such a noticeable upward trend in the instrument can also be explained by the “thin” market, where not many investors remain on the eve of the New Year holidays. The US dollar reacted negatively to the fact of approving a new stimulus package for the American economy. Moreover, it became known last week that the House of Representatives of the US Congress approved the initiative of Donald Trump to increase direct payments to households from 600 to 2000 dollars, which forces the Senate to consider putting this issue to a vote.


The US dollar has dropped markedly against the Japanese yen during today’s Asian session, updating local lows since December 21. The instrument is losing about 0.23% and is preparing to test the 103.25 level for a breakdown downward. The US currency is under pressure again at the end of the year in response to rising demand for risky assets as investors expect the global economy to return to growth in 2021. The dollar was pressured by rumors about the imminent approval of another vaccine against COVID-19, this time from AstraZeneca plc. However, the pharmaceutical company, apparently, has so far applied for registration only in the UK. The block of statistical data from the USA will be in the center of attention of American investors today. In particular, traders will be interested in the Chicago PMI for December, as well as the volume of pending home sales in November.


Gold prices are rising during today’s Asian session, developing a weak upward momentum that formed the day before. Pressure on the position of the American currency was exerted by Donald Trump’s initiative to increase the volume of direct payments to households from $ 600 to $ 2,000, which was supported by the US House of Representatives. The Senate is expected to convene to vote on this issue shortly. In turn, further growth in gold demand was limited by the expansion of coronavirus vaccination programs around the world. It became known this week that the UK is preparing to approve another COVID-19 vaccine from AstraZeneca, which should positively affect the pace of the vaccination campaign.

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