In FX, investors continue to distance themselves from the US dollar and eye yielding currencies of emerging markets and those backed by commodities, including the Australian and Canadian dollar.
The USD Index, which tracks the greenback against six currencies, is down 0.27% to 96.350. Investors are all into stocks right now, anticipating a favorable earnings season. Also, hopes for the development of effective COVID vaccines and drugs are backing the risk sentiment.
The sterling is surging against the greenback and moderately up against the euro. Markets are waiting for the speech of Bank of England Governor Andrew Bailey, due later today.
The EUR/USD pair is up 0.32%. Despite being plagued with crises, the euro is still a major attraction for the bloc’s member countries that haven’t adopted it yet. Croatia and Bulgaria got Europe’s nod to enter the so-called waiting room to become part of the eurozone. Romania hopes to be accepted next and become the 22nd country to join the single currency.
