Risk on gets another boost on vaccine news
The covid story continues to be one of a vaccine and the prospects of increasingly bad numbers from cases, hospitalizations and deaths. Today, Pfizer said their tests have now shown 95% success which is near the numbers from Moderna. That has some risk on flows with with NZD and CAD modestly higher. The USD is the weakest in the morning snapshot. The problem with that story is that the JPY which usually is weak in risk on, is higher. The EUR which tends to rise is lower. So there is some slipping and sliding going on which may be influenced by things like technicals. For intstance, the EURSUD moved up to test the high from yesterday, but fell just short and started to move back lower toward unchanged.
The ranges and changes charts below are showing modest price action compared to the 22 day averages (about a month of days). The changes vs the USD are mixed with the EURUSD and USDCHF within 3 pips of unchanged, while pairs like the USDCAD and NZDUSD are further away from unchanged (risk on). The JPY crosses pairs are not far from unchanged and most are below unchanged which is not congruent with a risk on flow type of day.
In other markets:
- spot gold is trading down $7.80 or -0.41% at $1872.70.
- Spot silver is trading down $0.09 or -0.3% at $24.39.
- WTI crude oil futures are trading up $0.75 or 1.81% the $42.18. The DOE inventory data will be out at 10:30 AM with a expected build of 1600K . The private data showed a build of 4.17M near the close yesterday
In the premarket for US stocks, the futures are implying gains:
- Down +112 points
- NASDAQ +22.2 points
- S&P index +8.72 points
in the European equity markets, the major indices are higher:
- German DAX, +0.3%
- France's CAC, +0.5%
- UK's FTSE 100, +0.36%
- Spain's Ibex, +0.14%
- Italy's FTSE MIB, +0.6%
in the US debt market, yields are mixed but little changed:
In the European debt market, the benchmark 10 year yields are mostly lower but modestly lower.
