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Monday, May 29, 2023

US Dollar Pinned Close To Key Support As Vaccine Develops

As we all are aware that the clinical trial of the coronavirus vaccine is making great progress as they revealed almost 90% effectiveness and is soon to receive its approval and distributed all over the world. The US dollar was able to mark time on 23rd November, Monday, while the chances of a premature rollout of the COVID-19 vaccine began due to the concerns of economic restrictions and tried to control further spread of the deadly virus and left the safe-haven resources in a state of limbo.

Japan recently observed a season of holiday. Due to these holidays, liquidity was infrequent as well as the investors were reluctant to give a trial to the key chart barriers about the number of pairs with US dollars.

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The euro was seen to hover over the rate of $1.1858 due to the repeated failure to climb over the level of $1.1993 which is a key resistance level for the past one week. It is of utmost importance and very necessary that the euro reached the price top of $1.1919 within the month of November in order to extend and sustain their positive uptrend.

US Dollar
US Dollar

US Dollar Status

Few analysts of Capital Economics have stated that the rate of exchange is likely to move upward in the upcoming few years as against the backdrop of a lesser stability risk on the part of the euro-zone. There will also be an increase in the yield opening between the euro-zone and US dollar zone.

Capital Economics analysts have also increased their predictions for the euro as they now observe that towards the end of 202 it will be at $1.2500 along with $1.3000 towards the end of 2022. On the other hand, earlier they had forecasted that the euro will be at $1.2000 in 2021 and $1.2500 in 2022.

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The US dollar has been gradually witnessing a decline and is currently below the Japanese yen. The US dollar was standing a 103.80 last which was right above the support chart of 103.62. In case of a break, the US dollar is likely to witness a re-test of the month of November level of 103.16, and this is the lowest in the stock market since the month of March.

In a comparison of the other currencies in the market, the US dollar was at a softer shade of 92.374 and it was very uncomfortable to see it standing very close to the support level of 92.129 as well as 91.373.

As the vaccine is rapidly approaching, it is weighing on the US dollar’s safe-haven. Americans are likely to receive the first doses of the vaccine once it gets the FDA approval by mid-December and is distributed.

Britain might also receive the approval of Pfizer’s vaccine this very week.

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