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Markets rally on hopes of Covid-19 cure

10 Jul 2020

Market growthEUR/USD is trading above 1.13, emerging from previous lows. The gains arrive as Gilead reported that its drug Remdesevir has proven to reduce the mortality rate among Covid-19 patients substantially. The news sent stocks climbing higher, but weight heavily on the dollar.

Improvement in market sentiment also boosted the Pound-to-Dollar exchange rate, trading above 1.26, while the safe-haven greenback decelerated. Brexit concerns have been shrugged off by investors, as the focus has been shifted towards the possibility of a new coronavirus cure. 

GBP hit a three-week high against the euro and is set to post a second consecutive weekly advance. The pound was seen rallying over the past 24 hours and is due to offer the best exchange rates seen in the past three weeks, for those looking to purchase euros. Further gains for the Pound depend on more positive Brexit news being announced, as well as the British economy catching up with that of the eurozone. 

Elsewhere, the Canadian dollar was seen hitting a notable inflection point against the pound. The Canadian economy recorded better-than-expected jobs data ahead of the weekend. However, this was not enough to prompt a bullish upbeat reaction to the value of the Canadian dollar, indicating that markets are not convinced there is enough data to trigger a policy shift by the Bank of Canada.