Pfizer Inc and BioNTech Reported Impressive Progress in Vaccine
As the situation with the next president of the United States has become clearer, the market’s attention has switched to back to the virus. On Monday, the news that Pfizer Inc and BioNTech reported impressive progress in vaccine development has agitated everyone. Gold plunged below $1 900, the Japanese yen took a severe blow while the S&P 500, on the contrary, closed at 2-month highs. In other words, investors pulled out of defensive assets and poured cash into markets that are closely tied to economic growth. Obviously, a correction in the opposite direction is natural after such a move. Notice that there are still many uncertainties regarding immunization and vaccine efficacy, scalability, side effects, and distribution. It remains to be seen whether the positive news flow is sustainable. As a result, on Tuesday, the yen and gold will try to retrace losses.
Donald Trump has made no sign of conceding and his campaign is planning a series of rallies to build support for legal fights challenging the election results. In the meantime, Joe Biden’s transition team is considering legal action over a federal agency’s delay in recognizing the Democrat’s victory over President Donald Trump. The Nasdaq 100 fell on Monday as investors rotated out of defensive technology names into shares depressed by the economic impact of lockdowns. WTI or crude oil is trading around $40 a barrel after running into the resistance of the 100 days MA.
USD/TRY rose by more than 3% retracing the previous loss as Turkey appointed former deputy prime minister Lutfi Elvan as its new treasury and finance minister. Finance ministers and central bankers from the Group of 20 will hold an extraordinary meeting on Friday to discuss bolder action to help poor nations struggling to repay their debts.
So far, in foreign exchange, the EUR/USD pair has not been able to leave the range between 1.19 and 1.16 where it spent September and October. The decline below 1.1800 will confirm an interim top and lead the pair to further support levels.
After the big rally, AUD/USD formed a “shooting star” candlestick on the D1. On the H4, the price action looks like a bearish “Shark” pattern. All in all, correction to 0.7235 looks likely. The next level to watch is 0.7200.