Higher-risk currencies soar on Biden win, successful Covid-19 vaccine
Trade-related currencies were buoyed on Monday by a pick up in risk appetite after Joe Biden clinched the U.S. presidency and Pfizer Inc said its experimental vaccine was more than 90% effective in preventing COVID-19.
The Scandinavian currencies and the Japanese yen were amongst the biggest movers, while the offshore Chinese yuan hit its strongest in 28-months.
The dollar stabilised against a basket of currencies having touched a 10-week low of 92.12 and was last up 0.2% at 92.31.
The Swedish crown rose to a 28-month high of 8.5845 versus the U.S. dollar and to a 22-month high of 10.20 against the euro.
Its Norwegian counterpart rose 1.6% against both the dollar and the euro to hit two-month highs against each of 9.0025 and 10.7030 respectively..
The Australian dollar was up 2.4% at 76.85 against the Japanese yen, a seven-week high. The yen also fell 1.6% against the U.S. dollar to 105.
The offshore Chinese yuan was not far behind, hitting a peak of 6.5501 against the dollar and last up 0.3% at 6.5729.
Euro/dollar - the most traded currency pair in the world - was up 0.1% on the day at $1.1892.
German exports rose by more than expected in September, and foreign trade gave Europe’s largest economy a boost going into the fourth quarter as it struggles to avoid slipping into a double dip contraction.
10-year Treasury yield jumps above 0.95% following vaccine news
The yield on the 10-year Treasury note jumped 13 basis points to 0.95%. The benchmark rate touched a high of 0.975%, its highest level since March 20. The yield on the 30-year Treasury bond climbed 15 basis points to 1.742%. Yields move inversely to prices.
JPMorgan sees euro grinding higher toward mid 1.20 versus U.S. dollar in 2021
Besides emerging markets, Adam Margolis of JPMorgan Private Bank discusses the outlook for the euro and Japanese yen against the U.S. dollar.
Reference: CNBC
Thai
Eng