Forex Today: Risk appetite smashes the dollar

What you need to know on Wednesday, May 27th:

Risk-on led the way as investors welcomed news related to economic reopenings and developments around possible COVID-19 vaccines. The greenback fell against all of its major rivals while stocks jumped globally. US indexes reached levels that were last seen in March.

Novavax, a US biotech company, announced that it had started human trials of a COVID-19 vaccine, in Australia. Results are expected by July, where the next phase of testing should begin. Right now, there are twelve different vaccines being tested around the globe.

The EUR/USD pair flirted with the 1.1000 level but was unable to clear it.  

The Pound soared amid rumours indicating progress in Brexit talks. According to the latest headlines, the EU is willing to shift its stance on fisheries when talks resume next week, potentially opening the doors for other concessions between both parts.

The USD/JPY pair remained lifeless for a fifth consecutive day as the market ignored safe-haven assets.

The AUD and the CAD run to fresh multi-week highs against the greenback, backed by the rally in equities.

By the end of the US session, news made the rounds indicating that the US is considering a range of sanctions on China amid Beijing’s pressure on Hong Kong. Earlier in the day, Trump’s advisor Kudlow said that the President is not concerned about the trade deal that’s intact for the moment. He added that Trump’s main concerns are more related to China’s responsibility on the coronavirus spread and Hong Kong.

Gold eased and settled at around $1,710.00 price zone amid the better market mood. Crude oil prices edged higher, amid shrinking supply and hopes on economic comebacks.

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