EURUSD recovered a little bit after plunging last night.
On Tuesday morning, the major currency pair is reaching stability after a correctional decline that took place last night. The current quote for the instrument is 1.1830.
Yesterday’s market fluctuations were probably more emotional than earlier. One thing is that market players do count on Joe Biden’s presidency as the time of improvement of foreign relations. Another thing is investors’ optimism after Pfizer and partner BioNTech said Monday that their vaccine against Covid-19 was 90% effective.
Both factors don’t mean much indeed. Biden will surely waste a lot of time to destroy everything Trump managed to build, which means no rest for policymakers. Information on the 90% effective vaccine is also rather meaningless as it provides no understanding of the date it will be ready or how effective it might be at the end.
As a matter of fact, this growth happened only because investors needed the reason to buy as long as emotions were strong and fears retreated. It’s not for long.
The statistics published yesterday showed that the Sentix Investor Confidence in the Euro Area dropped to -10 points in November after being -8.3 points the month before. Nevertheless, it turned out to be better than the expected reading, which implied -15 points. However, the current situation with confidence in Europe is quite the same as everywhere else because it’s rather unclear how much the second wave of the pandemic might damage global economies.
Orgin: RoboForex
