The major currency pair is growing on Wednesday morning and remains confident that the pandemic will be over soon. The current quote for the instrument is 1.1910.
There are two moments right now that make market players quite optimistic: expectations that the vaccine against the coronavirus will be produced soon and appear on the market, and lack of political complications in the power transition procedure from Donald Trump to Joseph Biden. The vaccine is expected to wipe out the pandemic, thus helping the global economy to start recovering. This is what is pushing financial markets upwards and the USD – downwards.
The statistics published yesterday showed that the Consumer Confidence from Conference Board in the USA dropped to 96.1 points in November after being 100.9 points in the previous month and against the expected reading of 97.7 points. It’s the lowest number over the last three months.
The report indicates that the increasing number of new coronavirus cases in the USA deteriorated the population’s expectations about the stability of the labor market and the general state of the national economy.
One may well assume that if the consumer sentiment was not too good in November, a month preceding a season of active consumer spending, then the retail sales in December-January may turn out to be worse than expected due to less optimism.