EUR/USD, USD/JPY Price Analysis & News
Vaccine Hopes vs COVID Concerns
The tug of war between vaccine optimism and COVID concerns as to what is the more dominant narrative sees major FX pairs in limbo. Besides some modest firming in the Euro[5] the rest of the G10 have been trading relatively flat. Pfizer’s vaccine breakthrough has raised hopes that others may see similar results, most notably Moderna, who stated yesterday that it has enough data for a first interim analysis of COVID vaccine. While the company has not given an exact time as to when the results will be released, Dr Fauci has said however, that the data could be announced within the next couple of days. To that end, market sensitivity to further vaccine updates is likely to remain high amid hopes of a quicker distribution of a COVID vaccine from several providers.
FX Majors 1-Day % Change
EUR: Broad based gains for the Euro, with EUR/USD[6] supported by cross-related flows in EUR/GBP[7]. Topside resistance in the EUR/USD sits at 1.1820-25, where a break above opens the door to 1.1870-75. Failure to overcome initial resistance puts focus back on 1.1755-60. Elsewhere, declines in EUR/GBP had been curbed at the September lows with the cross back in the mid-89s While a deal can see the cross return to 0.87, with current negotiations set to miss yet another deadline (Nov 15th) uncertainties do still remain for GBP and thus the bounce back better reflects those risks. My bias remains a fade on EUR/GBP rallies.
