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Market News Vaccine hit the forex market, GBP continued to rise Analyst: Is the market over-excited?

Vaccine hit the forex market, GBP continued to rise Analyst: Is the market over-excited?

After this excitement, the market began to ask itself whether this reaction had a reasonable basis or was it exaggerated.

Eden
2020-11-11
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The pound traded at 0.8920 pounds against the euro in late trading, and once appreciated by 1% during the session. The pound also rose against the dollar, reaching a two-month high of 1.3278 US dollars.


Although the number of layoffs in the UK in the third quarter reached a record high, investors still expect that the new crown vaccine is expected to bring the UK economy back on track.


In addition, the speeches of British government officials on the issue of Brexit also gave people hope that an agreement could be reached before the end of the year. The British Chancellor of the Exchequer Rishi Sunak said on Monday that the UK and the European Union have made significant progress in their Brexit negotiations and will be able to reach an agreement.


The Australian dollar, which is regarded as an indicator of risk appetite liquidity, was flat, maintaining the gains made after the news of the vaccine. The New Zealand dollar rose for the eighth consecutive trading day.


The US dollar has fallen by about 1.4% this month, and the US dollar index is now at 92.653.


The safe-haven currency remained unchanged on the day of the circle, at 105.28 yen. The daily circle depreciated by 2.2%, which was the biggest one-day decline since March. It recovered part of the previous day's losses in early trading on Tuesday. The Swiss franc, another safe-haven currency, also remained little changed. The US dollar rose slightly against the Swiss franc by 0.1% to 0.914 Swiss francs. It rose by 1.5% on Monday.


Analyst: The market is exaggerated, future depends on economic measures
Some investors worry that the hot market may cool down. In response, Commerzbank Foreign Exchange and Emerging Market Analyst You-Na Park-Heger said: "After such an exciting reaction, the market is now asking itself whether this reaction has a reasonable basis or is it exaggerated."


Minh Trang, senior foreign exchange trader at Silicon Valley Bank, said that the new US stimulus plan is one of the catalysts that may stimulate the foreign exchange market in the future. "This is the next topic that most people will pay attention to in the next six months."




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