Vaccine Hopes Diminish As Reality Kicks In

By Orbex

America Given Dose of the Truth

US indices fell on Thursday after investor hopes for a Covid-19 vaccine quickly faded as America imposed new COVID-19 restrictions in New York.

The Dow, S&P, and Nasdaq all fell by 0.5% as the country recorded over 1 million new virus cases over the past week.

Weekly jobless claims fell again in another sign of an improved labor market. However, this was unable to spur on the US index as it ended yesterday’s session on a mixed footing.

As we go into the weekend, the prospect of Trump conceding the White House remains slim, as election officials have rejected any claims of manipulation with the vote count.

Too Early to Plan Christmas

The euro closed 0.24% higher yesterday and managed to regain the 1.18 handle once again.

This comes as Eurozone industrial production dropped by -0.4%, which was well below expectations.

In addition, several European leaders have warned that it is too early to plan for Christmas travel, as coronavirus cases continue to rise across the continent.

We now look to today’s GDP numbers for a push back to monthly highs.

Brexit Negotiations Flounder as Deadline Looms

The pound dropped 0.87% on Thursday as investors turned cautious on the ability of the GBPUSD pair.

Surging virus cases in the UK has hammered optimism about a vaccine on concerns about the potential impact of the pandemic on an already fragile economy.

These fears have been confirmed by the downbeat GDP figures which came in lower than the consensus.

Added to that, the lack of progress with Brexit talks added pressure on the Sterling. The negotiators will most likely miss the mid-November target set two weeks ago to reach a deal as anxieties remain.

Gold Hits Choppy Waters

Gold rose by 0.58% yesterday and held steady, as investors remain mixed about their risk-off mood.

The yellow metal still has a lot to do to reclaim the $1900 handle, as we now look ahead to further virus waves that are offsetting vaccination hopes.

As we enter the winter months, risk appetite could shift rapidly once again if vaccine hopes are downplayed.

Oil Loses $41

WTI ended 1.37% lower on Thursday as it was unable to maintain its grip on $41.

The EIA report, which was delayed by Wednesday’s Veterans Day holiday, saw an unexpected build in inventories last week.

Since this week’s API data showed an opposite figure, this led to the pullback with investors now looking to wards the $40 handle.

By Orbex