- Asian session review: the US dollar declined against the euro and the yen
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Asian session review: the US dollar declined against the euro and the yen
| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|---|---|---|---|---|---|
| 07:00 | Germany | CPI, m/m | November | 0.1% | -0.8% | -0.8% |
| 07:00 | Germany | CPI, y/y | November | -0.2% | -0.3% | -0.3% |
During today's Asian trading, the US currency continued to decline against the euro, yen, and pound.
Yesterday, the European central bank (ECB) extended the Pandemic Emergency Purchase program (PEPP) for nine months and increased its volume by 500 billion euros to 1.85 trillion euros. The ECB expected to keep the base interest rate on loans at 0% and the deposit rate at -0.5%.
ECB President Christine Lagarde said that the eurozone economy is likely to experience a significant decline in the fourth quarter of 2020 due to the second wave of coronavirus, but the pace of contraction will be weaker compared to the second quarter.
Meanwhile, European leaders finally approved a $2.2 trillion budget plan on Thursday, as well as a 750 billion Euro emergency package of support for the economy.
The weakening of the dollar, in particular, was supported by traders ' optimism about the imminent introduction of COVID-19 vaccines, which supports risk appetite. The Vaccines and Related Biological Products Advisory Committee recommended approve emergency use of the Covid-19 vaccine from Pfizer and BioNTech in the US following a meeting on Thursday
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