This is what you need to know to trade today Tuesday November 10:
Markets are taking a breather from the euphoria seen Monday after Pfizer announced a breakthrough in the coronavirus vaccine. The dollar is falling along with bond yields. Speculation continues about President-elect Biden’s economic team and President Trump’s legal fight to change the election results.
Coronavirus VaccineAmerican pharmaceutical giant Pfizer and German BioNTech announced that their COVID-19 vaccine is 90% efficient, triggering a massive rebound in markets. The approach used to develop immunization is also used in three other vaccines, giving hope for a more rapid distribution. However, it can take long winter months for a significant part of the population to be able to receive the vaccine.
See Covid Vaccine: Pfizer’s Success Is Promising For Three Other Vaccines, The Rally May Have Just Begun
The safe haven dollar fell initially, but then skyrocketed as U.S. Treasury yields soared. Gold and the yen were the biggest losers. Trends are partially reversed on Tuesday, with stocks and the dollar retreating while the precious metal and the Japanese currency are on the rise.
American politics: President-elect Joe Biden has presented his task force on coronavirus and he’s ready to provide additional details on his plans later on Tuesday. There is much speculation about the nomination of a Secretary of the Treasury, with the governor of the Federal Reserve, Lael Brainard, at the helm.
President Donald Trump and most Republican senators have refused to budge and plan to increase the legal challenges. So far, Trump has yet to provide evidence of allegations of fraud. Most of the count has been completed and significant additional results may be obtained towards the end of the week.
Coronavirus cases and deaths in the US continue to rise, while hospitalizations have exceeded 59,000, the highest level since July 25. US authorities approved Eli Lily’s covid antibody drug, which is meant to reduce hospital admissions. Biden warned of a “dark winter”
Brexi: The House of Lords rejected parts of the government’s Internal Markets Bill that violates the Withdrawal Agreement. The upper house can only delay its passage, and Prime Minister Boris Johnson is ready to move forward with the controversial legislation. Talks between representatives of the EU and the UK continue in London.
The change in the UK jobless claims count surprised with a 29,800 drop in October and wage growth accelerated to 1.3% in September, beating estimates and supporting the British pound.
The EUR/USD it has retreated from its high above 1.19 amid the market sway and as most of the continent remains under restrictions. Portugal and Hungary were the last to approve measures, while French officials see a relatively mild impact on the economy, at least compared to the spring close. German ZEW economic sentiment is expected to show a drop in business confidence.
The oil prices soared amid optimism about a vaccine, and the WTI is currently consolidating at around $ 40.
The Bitcoin It has stabilized above $ 15,000 after several turbulent days. Ethereum maintains gains close to $ 450.
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Credits: Forex Street
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