By Deepta Bolaky
Following the election updates, global equities continued the rally on the back of positive vaccines updates. Pfizer and BioNTech announce vaccine candidates against COVID-19 achieved success in first interim analysis from the Phase 3 Study. The vaccine candidate was found to be more than 90% effective in preventing COVID-19 in participants without evidence of prior SARS-CoV-2 infection in the first interim efficacy analysis.
In the US markets, major US equity indices pared gains towards the final trading hours on speculations that the divided Congress will only pass a smaller relief package by the year-end. While the Dow and S&P500 remained in positive territory, Nasdaq Composite dropped in the red dragged by the downbeat performance of the tech giants.
In the FX space, the price action in the markets was mostly driven by geopolitics amid a relatively subdued economic calendar. Major currencies were mixed against the US dollar following the upbeat market mood and vaccine updates. Commodity-linked currencies remained stronger against the greenback on Monday while safe-haven currencies like the Swiss franc and Japanese Yen took a beating. The British Pound also rose higher lifted by comments from the British finance minister Rishi Sunak that there was significant progress made on the Brexit negotiations front.
Crude oil prices posted modest gains on the back of the broad optimism in the markets. The positive vaccine news has revived hopes of the global oil demand recovery amid fresh lockdown measures. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading at around $39.84 and $42.04 respectively. Oil traders will now be looking for weekly oil reports for fresh trading impetus.
After reaching a daily high of $1,965.52, the precious metal dropped to a low of $1,850 on the vaccines updates and the possibility of only a smaller stimulus package. As of writing, the XAUUSD pair is trading around $1,861.
Source: GO MT4
By Deepta Bolaky
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|Wednesday, 11 November 2020
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