The dollar was mixed against its major rivals on Wednesday, 8. Operators followed news about Ômicron-related vaccines and restrictions. Additionally, the Bank of Canada (BoC) decision was on the trading desks’ radar.
The DXY index fell by 0.49% to 95,894 points. In the late afternoon in New York, the dollar rose to 113.66 yen, while the euro accelerated to $1.1354 and the pound fell to $1.3233.
Pfizer’s preclinical studies have suggested that the covid-19 vaccine, in partnership with BioNTech, is still effective against the Micron strain. The news confirmed optimism among traders. “The US dollar and major currency pairs were cut short this Wednesday as markets digested the reassuring news in the fight to suppress the micron dynasty,” says Joe Manimbo, analyst at Western Union.
Despite the strength of the euro against the dollar, for Manimbo, the movement was most likely due to the weakness of the British pound. The British currency accelerated its decline after Prime Minister Boris Johnson confirmed restrictions in the United Kingdom to contain the progress of the new alternative.
Western Union indicates that the dollar is still well supported awaiting US consumer inflation data, which will be released next Friday, 10.
Today, the Bank of Canada announced that the benchmark interest rate will be kept at 0.25% in Canada. The US dollar strengthened against the US dollar, but lost ground throughout the session. ING notes that the impact of the decision was minimal given that there were no surprises in the statement. For the Dutch bank, the Canadian dollar has room to rise by the end of this year, as global sentiment continues to improve.
