The euro was little changed against the dollar. With rising infection numbers, health experts have warned that current restrictions will not be enough. So Germany, half of Italy and central France are either imposing new or prolonging existing lockdowns. On the other hand, AstraZeneca's COVID-19 vaccine has been cleared by the European Medicine Agency. However, the EU is lagging behind the US where inoculation is gaining traction.
The British pound weakened after the EU stated its readiness to block exports of AstraZeneca’s vaccines to the UK. In addition, the US National Institute of Allergy and Infectious Diseases announced that some of the AstraZeneca’s data is outdated, casting fresh doubts on the ongoing immunization solution.
The Japanese yen slightly strengthened due to a deterioration in global risk sentiment. The US, the EU, UK and Canada imposed sanctions on Chinese officials for human rights abuses in Xinjiang.
Overall, the optimistic US economic outlook continued underpinning the dollar.
The gold price was little changed hovering above the $1,700 level. The price recovery is fragile, while the downside pressures remain strong.
The S&P 500 Index hit a new all-time high but retreated afterwards as the US ten-year Treasury yields hit 1.75%. Fiscal stimulus distribution is cheering investors, while President Joe Biden is reportedly mulling a $3 trillion infrastructure plan, to be presented this week.
Oil prices fell sharply due to the combined effect of fresh lockdowns across Europe, a rising number of infections around the world, with an even higher number of oil rigs and stockpiles figures in the US. In addition, forecasts of the US EIA - that by the end of this year global oil demand will be 2.5 million barrels per day less than previously thought, pulled oil prices lower. A stronger dollar also weighed on prices.