It is well known that the employment data was released some time ago. This release certainly has an influence on several currencies in the forex market. Some of the major currencies that were also affected were Dollar and Pound Sterling.
According to the data, the USD is still in a downward trend this week. After many things that led to the decline, now the dollar has to stay slumped because of the released employment data. Meanwhile, the pound sterling is reportedly in a state of focus.
That was regarding the release some time ago. The USD was weakened in the early state of European trade on Thursday. It seems that investors and traders are so careful to face the Federal Reserve meeting that will be held this week.
Data from the Market
In the market, it is known that the Dollar index which is tracked the Greenback to the other six currencies is slipped down for 0.2%. It touches the value of 92,920. On the other side, the EUR/USD is up for 0.2% in 1.1889.
That change happened ahead of the German release. The first main business which will be released on this month is the ZEW Index. It seems that the traders will focus to monitor all the news and important release in the future.
Besides the release, some currencies in the market are still in a fluctuating sign. It is influenced by so many reasons and conditions. The latest one is for sure about the coronavirus vaccine. This vaccine is like a new hope for everything.
That important vaccine will for sure make this world come back to its normal condition. It means that the economic situation can be fixed soon. However, the news about the temporary suspensions of the trials really shakes the market.
Market Positive Reaction due to the Vaccine
AstraZeneca decides to continue the clinical test of England from several COVID-19 vaccine candidates in the present era. On the other side, Pfizer also wants to make the phase 3 trials become wider and also bigger. It is especially for their own candidates.
These decisions have been helped the market to take a more positive attitude to the risk. It is a happy thing because Pfizer explained about their vaccine target. When the assets may bounce back, the dollar has lost its momentum.
That is a statement from the director of Forex Societe Generale, Kyosuke Suzuki, as it was noted by Reuters. However, it looks that the investors are still careful ahead of the two-day meeting that will be held by the Federal Reserve on Thursday.
That was done after the Fed has adopted the new approach last month to fill the inflation target of 2%. The Fed will also renew the projection for the economic prospect and interest rate which covers the estimates for 2003.
It will be done for the first time. In other places, GBP/USD was slightly up for 0.1% to 1.2858. It happened although there are so many fluctuations in the Brexit Negotiation. It is also related to a country's employment market weakening.
The England Employment Market
The early parliamentary vote about the controversial England constitutions was though violating the Brexit agreement with the European Union. It was passed on Thursday and came with a heated debate. UE has been warned about the England constitution's legality.
It can trigger bad negotiation and increase the possibility of Brexit without any deals. The England employment market was worse in the summer. It happened even when the economy was opened again step by step.
The retail business was up for 0.5% year by year in August and the oil production industry was also strengthened by about 45.6%. These two values beat the expectation. It is especially for the retail business that has its first raise this year.
