This is what you need to know to trade today Tuesday, August 24:
Markets remain bullish after the FDA fully approved Pfizer’s covid vaccine and as expectations for tapering from the Fed wane. Concerns about Afghanistan and the virus are receding, sending the safe-haven dollar down and gold higher. Cryptocurrencies recede from their highs.
Injection in the arm: The US Food and Drug Administration (FDA) has fully approved the Pfizer / BioNTech vaccine for COVID-19, allowing institutions and companies more leeway to require the immunization. This inoculation had only had emergency authorization. Monday’s news sent stocks higher despite early reports of such a move.
No rush for tapering: Investors continued to respond to the declining chances that the Federal Reserve would cut its bond buying program. Fed hawk Robert Kaplan showed his willingness to change his mind and the central bank’s decision to hold its Jackson Hole Symposium virtually implies that the Fed would not withdraw stimulus when forced to downsize because of the variance. Delta.
The optimistic feeling has made fall to the dollar, with the coins ignoring their own problems. The EUR/USD It is trading around 1.1750 despite the decline in the German Purchasing Managers Index Manufacturing PMI. The GBP/USD It recovered to the 1.37 level, ignoring a drop in the UK services PMI. Both countries are suffering from elevated covid cases.
The AUD/USD is above 0.72 and the NZD / USD exceeds 0.69 on the back of USD weakness, not taking into account the prospects for longer lockdowns in both countries. The USD / CAD it has fallen to around 1.26, with the loonie benefiting from the rebound in oil prices. The WTI jumped to $ 65 amid improving outlook.
The oro has reached $ 1,800, benefiting from upbeat mood and calm US Treasury yields. The price of the precious metal has finally broken out of range.
New home sales The US and the Richmond Manufacturing Index stand out on a light day on the economic calendar and before more significant releases later in the week.
Investors also have an eye on the virtual meeting of the G-7 focused on Afghanistan. The United States will depart on Aug. 31, but its allies urge it to expand the mission to aid in evacuation efforts. Staying longer could complicate the mission.
The cryptocurrencies are out of their highs with the Bitcoin hovering below $ 50,000 and Ethereum cooling towards $ 3,300.
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