FX Market Report 26/10/20

On Monday, the U.S. dollar was up against the Euro, following the spike in coronavirus cases in Europe and the United States. The gain was also supported by the lack of progress on a U.S. stimulus package.

“Fortunately, there are several vaccines in the pipeline, or we could have been looking at a pretty significant market reset this morning with Covid-19 flash points flaring up in virtually every corner of the globe this weekend,” strategist Stephen Innes said.

The U.S. is expected to address the latest stimulus plan, but traders are growing cautious. Within two days, the U.S. has seen the highest number of new COVID-19 cases. Similarly, Europe has recorded a sharp increase in cases, with Spain announcing a state of emergency whereas restaurants and bars in Italy must shut down at six.

Despite staff at a major British hospital were told to prepare for a vaccine as early as next month, the shared currency failed to gain sentiment. The EUR/USD was at 1.1831, down by 0.3%. whilst the USD was at 92.95 against a basket of currencies.

The British Pound is trading at 1.2995 against the Euro.

On the other hand, the Aussie dollar dropped to 0.7118. the Norwegian crown also fell, following a positive week last week. Norway will be introducing stricter measures this week.

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