News

Stock Benchmarks Take a Break After Strong Rally, Dollar Dips

Equities

Futures tied to major US stock benchmarks held gains following a strong rally. The hopes over a vaccine that would put an end to COVID19 spread and restore the global economic activity boosted the risk appetite. The Dow Jones Industrial Average futures rallied to a record high of 30163, to run into slight profit-taking, and the S&P500 futures rose to a two-week high of 3653, while Nasdaq edged higher to 12171 but remained well below its all-time high. Vaccine headlines supported the flow to stocks and sectors that suffered most from COVID19 lockdowns. Market participants are looking forward to a series of economic indicators later on the day to have more insight into the latest US economic activity.

USD

The dollar index, which measures the greenback against a basket of major currencies, extended losses falling to 92.03, as investors favored riskier currencies. The Covid19 vaccines and rising prospects of a smooth transition for Biden created a medium for risk-on trading. The EURUSD rallied to $1.1914, the GBPUSD rose to $1.3383, and the AUDUSD hovered around $0.7360.

Metals

Precious metals prices remained under pressure as investors favored risky assets. The price of a gold ounce hovered slightly above $1800, the price of a silver ounce held steady near $23.30, and palladium futures eased to $2339.

Oil

Oil prices rallied to their highest levels since March despite the rise in private inventories, as risk-on sentiment prevailed. The American Petroleum Institute reported a buildup of 3.8 million barrels in US crude oil stocks. However, the vaccine announcements eased investors' woes over the global economic outlook, and boosted prospects of better oil-demand levels. The West Texas Intermediate crude January futures rose to $45.68, and Brent Blend January delivery rallied to $48.65. The US Energy Information Administration will publish the weekly oil report later today.

Major Economic Events

GMT Country Event Expectation Previous

13:30

US

 Durable Goods Orders (MoM)

1.0%

1.9%

13:30

US

 GDP (QoQ) (Q3) 

33.1%

33.1%

13:30

US

 Initial Jobless Claims

733

742

13:30

US

 Core PCE Price Index (MoM)

0.0%

0.2%

15:00

US

 New Home Sales (Oct)

975

959

15:30

US

 Crude Oil Inventories

-

0.786

19:00

US

 FOMC Meeting Minutes 

-

-

 

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.31% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Spot FX work, and whether you can afford to take the high risk of losing your money. Read more
Read more
Mail Call Chat