Forex Signals Brief for Nov 10: Vaccine News Sparks Markets
Rowan Crosby • 2 min read
US Market Wrap
US markets and risk assets have broken higher on the back of the news that a vaccine is on the way.
News that Pfizer’s experimental COVID-19 vaccine is more than 90 per cent effective, saw a spike in buying interest, with the hope that it could be rolled out by year’s end.
That said, there are still some hurdles that will need to be overcome, however, the developments do bode well for the host of other vaccines that are being developed. While risk assets were the winners, the safe haven plays such as GOLD took a beating.
The Data Agenda
As has been the case of recent times, there is some data around, but just how much that will impact markets is another question altogether.
Early on the EUR/USD will be watching the latest ZEW Sentiment figures, which is still sluggish, but at the same time, the only top-tier data point out of Europe. The UK will release employment data, which could have a big impact on the GBP/USD.
In the US, WTI might be the thing to watch today, on the back of the EIA short-term energy outlook, however, stocks and markets will mainly be focused on sentiment.
The biggest risk for investors with vaccine news is really the buyer the rumour sell the fact, play, given how far markets have rallied in recent months.
Forex Signal Update
The FX Leaders Team hit 2 winners from 4 trades yesterday, as the newsflow just keeps on getting bigger this week.
Make sure you follow our live signals as volatility could be high in the coming days.
USD/CAD – Active Signal
The USD/CAD has really fallen away sharply as risk assets got bid up strongly. We are running into big support here, but remain short looking for a break.
DAX – Pending Signal
The DAX continued the big push higher on the news yesterday and ran directly into overhead resistance. This pullback could be an opportunity.
BTC is still consolidating under the $16,000 and is looking bullish still.
We can see price is making higher lows on this pullback, which bodes well for a retest of that level and we can risk off the lows with a long entry.