Dollar falls after FDA paused J&J COVID-19 vaccine

On Wednesday, the sentiment was sour ahead of Wall Street’s opening, following news that the U.S. FDA paused the application of the Johnson & Johnson COVID-19 vaccine. The announcement came after at least six cases of severe blood clots related to the shot. Furthermore, stocks fell, providing temporary support to the U.S. dollar.

Additionally, financial markets changed course after upbeat U.S. inflation figures. The U.S. March Consumer Price Index surged to 2.6% YoY. Meanwhile, the core reading hit 1.6%, spurring risk appetite. Wall Street trimmed intraday losses, resulting and the greenback edged lower.

U.S. Treasury yields also came under pressure. The yield on the 10-year note declined to 1.62%.

In Europe, the German ZEW Survey revealed that the Economic Sentiment contracted in April, but the shared currency advanced to a new 3-week high versus the dollar.

The British sterling managed to post a modest intraday gain

In Britain, the February Goods Trade Balance posted a deficit of £-16.442 billion, worse than expected. Meanwhile, monthly Gross Domestic Product printed at 0.4% for February, better than the previous -2.2% but worse than the 0.6% anticipated. Industrial Production in the country dropped by 3.5% YoY, better than the -4.4% expected. Furthermore, Manufacturing Production declined by 4.2% YoY vs the -5.1% predicted. The British sterling managed to post a modest intraday gain.

Remarkably, Bank of England Chief Economist Andy Haldane stated he would quit his position and step down from the Monetary Policy Committee after June’s meeting to become the Chief Executive of the Royal Society for Arts, Manufactures, and Commerce.

The OPEC raised its forecast for global oil demand growth in 2021 to 5.95 million barrels per day from 5.89 million previously. Additionally, crude oil prices were marginally higher, with WTI ending the day at $60.00 a barrel.

The precious metal recovered the lost ground, with the spot ending the day at $ 1,745 a troy ounce, its highest level for the week.

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