Greenback Index Flirts With 90
The dollar strength faded throughout Wednesday’s session. After initially spiking to weekly highs, it eventually closed 0.10% down.
This comes despite new home sales rising more than expected in January, with the focus now shifting on today’s jobless claims.
With new infection cases dropping across America, researchers have found a worrying new coronavirus variant in New York, which could weigh further on economic recovery sentiment.
Eurozone Ready to Re-Open
The euro saw a choppy session end on a positive note as it closed 0.13% higher, pushing towards the 1.22 handle.
The European Commission President has responded to fresh criticism over shortages of vaccine doses in the euro bloc.
Von der Leyen stated that the EU is catching up with the Covid-19 vaccination rollout, as a lack of doses among the EU member states continues to blight an economic bounce back.
Chancellor’s Spring Boost
The pound continued its trajectory yesterday after initially spiking over the 1.42 handle, eventually closing the session 0.21% higher.
Rishi Sunak will use a giveaway budget next week to pave the way for a post-lockdown boom.
Help for motorists, hospitality firms, and the housing market, is expected to be among a string of eye-catching policies, as the Chancellor is set to shelve plans for tax rises.
Dow Closes at Record Level
The Dow kept the rally going on Wednesday as it closed over 1.4% higher, clinching a record high in the process.
The S&P500 advanced 1.1%, while the Nasdaq gained 1% which earlier in the day saw the tech-heavy index down 1.3% after a choppy session.
Johnson & Johnson have seen their Covid-19 vaccine deemed safe and effective by the FDA, paving the way for it to become the third vaccine to be authorized in the US.
Gold Struggles at Psychological Level
Gold closed indecisively yesterday as it continues to evade the $1800 handle.
The yellow metal failed to cheer the US dollar weakness, as a modest pickup in the US treasury bond yields further capped the safe-haven commodity.
Attention once again turns to stimulus headlines and the optimism of the Covid-19 rollout to weigh further on gold.
WTI Reclaims Multi-Year Highs
Oil proceeded to defy expectation as it ended 3.6% higher on Wednesday, as it closed at its highest level since 2018.
As further countries plan to exit lockdowns, sentiment continues to drive the black gold to the upside.
We now wait to see if government strategies go according to plan, as the world attempts to get back to normal.