The US dollar was steady against its key rivals as FX traders gauged the likelihood that a vaccine to combat the COVID-19 virus would have any major success before the pandemic's global second wave surged. Most experts are optimistic that a new vaccine will help in the long run, but have grave doubts as to whether it will be released in time to make any significant impact on the virus, which is once again surging across Europe and much of the US. In Germany, the economic outlook for next year has already been scaled back, and in the US, New York and New Jersey leadership has ordered restaurants and bars to close early. In the UK, the pound is being weighed by the absence of any concrete news on the Brexit trade talks, and experts are now fearing that the deadline will be missed.
In London trading as of 10:47 am, the GBP/USD was trading at $1.3186, a loss of 0.2451%; the pair has ranged from $1.31604 to $1.32298 in today's session. The EUR/USD was trading at $1.1814, up 0.3133% and off the session peak of $1.18207 while the low was recorded at $1.17583. The USD/JPY was lower at 105.3150 yen, down 0.11%.
Markets Eye Central Bankers
Market players are waiting to hear from the world's central bankers, including Jerome Powell of the US Federal Reserve Bank, Christine Lagarde of the European Central Bank, and Andrew Bailey of the Bank of England. The three should provide market players with some idea as to the thinking of the various policymakers regarding the monetary outlook for the central banks. Some analysts believe that given the dismal predictions regarding the coronavirus, with the worst still ahead, the central bankers will discuss the need for cooperation between monetary and fiscal policies in order to maintain the economic health of the respective economies.