The dollar slipped for a fifth straight session, sliding to a more than one-week low, as positive vaccine news offset a surge in coronavirus cases and tighter lockdowns across the United States and Europe.

Markets showed a little more appetite for risk, with gains in currencies that pick up on improving sentiment such as sterling, the New Zealand dollar and the Norwegian crown.

Pfizer announced that final results from its late-stage trial of its COVID-19 vaccine showed it was 95% effective, easing a pandemic-weary market. It followed news that Moderna Inc released preliminary data for its vaccine, showing it was 94.5% effective.

The global daily death toll from the coronavirus hit 10,816 on Tuesday, according to a Reuters tally, the highest single-day death toll. The United States, the world's worst-hit country, has reported about 11.38 million infections and 248,574 deaths since the pandemic began.

GBPUSD Analysis Today: July 14, 2021 – Delta Virus Spikes in UK Again Weakens Pound

“A surge in COVID cases is generally good for the dollar and other safe-haven currencies like the yen and Swiss franc, but the positive vaccine news has roughly negated that,” said Greg Anderson, global head of foreign-exchange strategy at BMO Capital Markets in New York.

The dollar is expected to weaken overall as the global economy recovers after vaccines are widely distributed and as the Federal Reserve prepares to provide more easing that would further erode the greenback’s value.

Fed Chairman Jerome Powell said Tuesday there was a “long way to go” to economic recovery and the U.S. Commerce Department’s retail sales report showed spending slowing.

In mid-morning trading, the dollar index slipped 0.1% to 92.298, after dropping to 92.207, its lowest since Nov, 9.

Market Review and economic data to be released today:

  1. Gold prices have the potential to be sold in the short term amidst the improving sentiment of Covid-19 vaccine developments after Pfizer reported their vaccine's effectiveness rate of 95%. However, the decline has the potential to be limited if the market is concerned about the high number of Covid-19 cases, especially in the United States. Today's market focus will be on a number of US economic data such as the Philadelphia Fed Manufacturing Index and Unemployment Claims released at 20:30 WIB, CB Leading Index and Exiting Home Sales at 22:00 WIB.
  2. Oil price buying has the potential to continue in the short term due to sentiment on vaccine progress reports. Lower-than-expected growth in US crude oil reserves and the emergence of hopes among market players that OPEC+ will delay the planned production increase after. Saudi Arabia asked fellow OPEC+ members to be flexible to meet market needs.
  3. EURUSD has the potential to be sold in the short term amid reports that two European countries, Poland and Hungary, have blocked the European Union's 1.8 trillion euro financial aid package aimed at boosting the economy depressed by the Covid-19 pandemic. Today's market focus will be on the Eurozone Current Account data at 16:00 WIB and the speech by ECB President Christine Lagarde at 22:00 WIB.
  4. GBPUSD has the potential to be sold in the short term amid the Times report showing that the European Union is pushing for no-deal Brexit preparations, with countries such as the Netherlands, France, Belgium among those requesting this to the European Commission. Today's focus will be on the UK CBI Industrial Order Expectation data released at 18:00 WIB.

The US Dollar Soars Due to Recession Concerns

Daily Pick

Today's prediction is on the EU pair (EURUSD) which is expected to increase limitedly, but the trend is still Bearish (decreasing) and the recommended OP is SELL at level 1.18650.

  • TP 1 = 1,18550 (10 point)
  • TP 2 = 1,18450 (20 point)
  • SL 1 = 1,18700 (5 point)
  • SL 2 = 1,18750 (10 point)

Always prioritize Money Management and Risk Management.

Today's Gold Analysis: July 12, 2021 - Delta Variant Becomes More Violent, Gold Rises

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