Markets rocked by retail frenzy, vaccine concerns and focus on US data

This is what you need to know to trade today Friday, January 29:

Market sentiment turned sour on Friday, with investors seeking refuge in the safe-haven US dollar amid escalating tensions between the United States and China, new concerns about a cash shortage in China and disappointing news about the Novavax vaccine.

The American pharmaceutical company Novavax Inc said that while its COVID vaccine is 89.3% effective in the UK trial, its effectiveness against the South African strain is only 49%.

He Chinese central bank extended net cash drain, which increased short-term borrowing costs and demand for liquidity ahead of the Chinese New Year holidays.

In addition, Markets Assimilate Latest Reddit Retail Frenzy seen in recent days, it caused a small contraction in some of the US stocks, with GameStop at the center of the scandal.

To bail out hedge funds, some brokers banned buying these stocks on their platforms on Thursday, allowing sell-only mode. GameStop it sank under trade restrictions, driving speculative flows into silver futures while pushing the US dollar lower. The DYX also suffered from pessimistic fourth-quarter GDP and US employment data.

The risk aversion returned to the marketsas Robinhood Markets Inc appears to have lifted trading restrictions on some of the blocked stocks. GameStop and AMC increased post-market trading, reigniting volatility and boosting the dollar’s safe-haven appeal.

Across the currency space, the EUR/USD is pressed around 1.2100, awaiting the release of Germany’s fourth quarter GDP. He USD/JPY renewed seven-week highs above 104.50. He AUD/USD it fell on S&P 500 futures, which is now trading around 0.7650.

He oro it clings to a familiar range around $ 1,850, while silver corrects towards $ 26. Crude oil prices are trading modestly flat, defending the $ 52 level.