Risk on as hope for a drug in treating COVID
The risk on trade is on with the NZD and AUD the strongest of the majors, while the USD is the weakest. Hope for a quicker cure for a drug in treating COVID and plans for the reopening of the economy have stocks moving higher.
Although the dollar is the weakest of the majors, it is off the lows for the day. Looking at the changes and ranges from the charts below, the greenback is well off the extremes vs the EUR, GBP, CHF, CAD and AUD. It is near low levels for the day vs the JPY and NZD however. The ranges are staggard but off the 22 day averages for all of the major pairs and crosses.
In other markets at the start of the NA session:
- Spot gold is trading downs -$22 or 1.30% at $1695.15
- WTI crude oil is not reacting to the baritone in the equity markets and is trading down $1.56 or -7.25% at $18.32. The low price scooted to $18.03. That is the lowest level since June 1999
In the premarket for US stocks the major indices are trading higher:
- Dow, +714 points
- S&P index +74 points
- NASDAQ index +150 points
in the European equity markets major indices are also trading higher:
- German DAX, +3.6%
- France's CAC, +4%
- UK's FTSE 100, +3.4%
- Italy's FTSE MIB, +2.7%
The US debt market the yields are trading marginally higher:
A snapshot of the European debt market shows the benchmark 10 year yields trading lower
