Another Drop for the Buck
The US Index lost further momentum on Wednesday as it ended the session 0.10% down.
More ground was given up as the greenback now trades precariously towards the 92 region.
Sentiment shifted on positive vaccination headlines and rising infection cases. This comes as Pfizer announced that its final analysis shows their vaccine is now 95% effective.
As the US records 250K coronavirus related deaths, President Trump still claims his administration will not enter a full lockdown. This comes as his campaign seeks a partial recount in the state of Wisconsin.
Sterling Rallies, but for How Long?
The pound continued its 4-day rally on Wednesday, closing 0.20% higher towards 1.33.
Brexit negotiations continue to dominate, as talks between Britain and the EU over a trade deal are going down to the wire.
EU leaders are due to meet in Brussels by video link today, and there are concerns in London that trade talks could be shelved as the bloc deals with internal disputes over its annual budget and covid-19 relief funds.
In addition, the UK could face almost a month-long lockdown. This will be in exchange for its proposed 5-day release from restrictions over the Christmas period.
Indices Fail to Maintain Momentum
US indices ended yesterday’s session lower as enthusiasm around additional progress on the pandemic vaccine front faded.
Adding another blow to the economic recovery was the news that New York schools will close in a bid to contain rising infection rates.
Optimism over a vaccine had tended to overshadow worries over the continued rise in cases. However sentiment shifted as bears entered the markets.
Gold Trapped on Coronavirus Headlines
Gold was dealt another blow as it fell by 0.48% on Wednesday.
The yellow metal fell as low as $1864 after Pfizer announced that its covid vaccine has shown a 95% efficacy rate in its third phase final trial.
However, the excitement soon ended with the fresh coronavirus statistics. These revealed that new infections and hospitalizations continue to surge in the US.
Risk appetite continues to shift at nearly every turn, as gold now closes in on 3-month lows.
WTI Shrugs Off EIA
Oil disregarded yesterday’s EIA inventory build as it closed 0.85% up.
The data showed an increase in crude supplies, as concerns over the uninhibited progression of the coronavirus pandemic festered in the market.
Reports have also stated that this year’s hurricanes led to the steepest fall in the Gulf of Mexico’s oil production since 2008.
Oil buyers will be glad to see the back of this year, as the Hurricane season officially comes to an end this month.