The US dollar has been witnessing a continuous decline in the stock market as the traders in the Asian session continued to emphasize the COVID-19 vaccine as well as other political news in the US. While discussing the topic of the vaccine, numerous nations including Germany, the United States, and the United Kingdom have already made public announcements of beginning the vaccination doses within the year of 2020 itself. This news and announcements started coming in following the strikingly positive news from the pharmaceutical companies including Pfizer, Moderna, and AstraZeneca. These companies reported that their vaccine candidates have shown almost 90% efficacy during the third phase clinical trial and will soon be receiving their approval and start the distribution procedure.
Owing to the problems in the transition and take-over process of the President-elect, Joe Biden, the US dollar has become very weak. On the other hand, the initial data that was reported by the US has revealed that the service and manufacturing sectors have been performing quite well throughout the month of November. Both the PMIs have shown an increase and now stand at 56.7 along with 57.7, respectively. This upswing has been remarkable since the US has been experiencing the largest number of fresh coronavirus cases each day and the deadly virus seems to be raging across the country.
The US dollar is definitely very weak but has managed to support the prices of the powerful and influential cryptocurrencies during the overnight transactions in the stock market. Bitcoin prices have been increasing by leaps and jump over $18,500. Ethereum, as well as Ripple, has also climbed above $620 and $0.60, respectively. The total market capitalization from the rally of all the cryptocurrencies has surpassed $559 billion. The weakened position of the US dollar has been supportive of the prices of cryptocurrencies.
Currencies Paired With US Dollar
The price of the US dollar to EUR has declined to an extreme low on psychological significance standing at 1.1800 as of yesterday. They managed to surge from a depression at the beginning of November and are currently trading at a price of 1.1848.
The price of the US dollar to GBP has also declined to 1.3312 which is very low. As seen on the regular chart, the price has been more than the white trendline which is moving upward and generating a yellow bearish pattern. This pair of currency has high possibilities of declining from today due to the bearish trend that is aiming for a 1.3275 support level.
The price of the US dollar to XAU has been declining continuously and presently trading for 1,823 which has dropped from a 1,880 high in the previous week. As the bears are commanding the movement, this pair of currency has chances of a further drop.
