Markets sentiments was lifted Monday as news hit the wires that AstraZeneca resumed its British clinical trials of its corona vaccine and Pfizer as well as BioNTech planning to expand their Phase-3 vaccine trial to more than 40,000 participants. Major stocks indices rallied up, propelled by demand in health care and tech sectors. Dollar index futures fell 0.13% but remained bid by dealers.
On the equities front, high options volume are seen in small and mid-cap stocks as investors reposition their portfolio for the coming US election in November. With 49 days left before the election day, investors will be busy trying to cushion any market shocks from the election outcome.
Source: Options Analytics
Across the continent, Brexit endgame will be seen in six weeks as EU waits to see if the UK will withdraw the Internal Market Bill. With UK already lagging behind in economic recovery, major banks are expecting a further £50bn QE from BoE with rates drop to zero in November MPC. Scotiabank in its latest report to clients, see the near-term corrective gains in GBP/USD are likely to stall below 1.31.
GBP/USD
EUR/USD
Source: ScotiaFX
The Canadian bank already short on EUR/USD @ 1.1850 with 1.1930 stop and limits at 1.1600 and 1.1500.
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