The value of the US dollar remains relatively stable on Friday morning. However, it exhibited a slight decrease against the Japanese yen.
The excitement that arose on the news of the successful trial of a vaccine against coronavirus infection faded away, and market participants once again faced the reality in which the growth of COVID-19 infection continues at a rapid pace and register new anti-records. This, in turn, forces the governments of states to think about introducing more stringent quarantine restrictive measures, which seriously affect the economic development of countries. The crisis that happened after the first wave of the pandemic has not yet been fully overcome, and a second wave is added to it, which could cause irreparable damage to the global economy. All this, of course, causes worry amongst investors.
According to the assumptions of the Chairman of the US Federal Reserve System, it is too early to say that a new coronavirus vaccine will save the world. First, it is still in development. Second, it will not be widely used in the near future. And its overall impact upon application will not be immediately felt. In this regard, the current significant increase in new cases of coronavirus infection can only worsen the economic crisis that occurred during the first spring wave of the pandemic. Moreover, according to Jerome Powell, the next few months may be one of the most difficult for the global economy, particularly in the individual economies of every country.
Global markets were thrilled with the news of the vaccine, which is being developed by two companies – America's Pfizer and Germany's BioNTech - however, this wave quickly passed, replaced by an even more decadent mood. For the US economy, the events of recent days may be associated with a reduction in financial incentives, which will inevitably affect the exchange rate of the national currency.
Meanwhile, traders' attention is still focused on the result of the recent US presidential election, looking forward to the announcement of the official result. In fact, the current American leader will fully depend on the program of new financial incentives, which was not adopted earlier. Despite the fact that Joe Biden managed to take the majority of votes, his rival to the position, Donald Trump, still does not lose hope to challenge this result in court.
The value of the euro by Friday morning was at $1.1805, which was previously recorded around $1.1806 per euro.
The value of the greenback relative to the yen fell by 0.18% to £104.94 per dollar, while Thursday's trading ended at £105.13 per dollar.
Euro also fell against the Japanese yen by 0.18%. Its current price was £123.9 per euro, which was £124.12 per euro at the end of Thursday's trading.
The pound sterling, on the other hand, slightly increased its value against the greenback by 0.04%, which sent it to $1.3123 per pound. On Thursday, it reached the mark of $1.3118 per pound.
The national currency of Australia did not raise its positions against the "American" this morning.
The Australian dollar did not raise its positions against the US dollar.
The USD index against a basket of six major currencies, which includes the Swiss franc, yen, Euro, Canadian dollar, pound sterling, and Swedish Krona, fell by 0.04% on Friday morning, indicating a return to a negative trend. The dollar index against a basket of the world's sixteen major currencies also declined by 0.01%.
