The coronavirus vaccine is planned to be developed by the end of the year. Such great news from American pharmaceutical companies give impulse to all sectors of the markets.
In the USA, the S&P500 index finally rose above 3000. This is the best value in the last two months. The USA is very optimistic about improving the economy in the near future and restoring business activity. The market in Europe has also grown well, although there are doubts about further developments with the Euro and the litigation between the ECB and the German bank. The DAX closes at a two-month high of 11504.
The weakness of the US dollar makes it possible for the Euro to retest the level of 1.0990, which is unable to do so for the second month. Analysts believe that the bottom of the crisis in Europe was passed in April, and now it is time for a long recovery. Meanwhile, the ECB is preparing a plan to buy bonds without Bundesbank participation. If the conflict between the banks continues, it will make some adjustment in the euro rate. It is likely that the movement of the euro will go down until the ECB brings clarity to its new program.
On Tuesday the Australian dollar rushed after the stock market. The resistance of 0.66 has passed, and then begins the hike to 0.6720 and then to 0.68. However, the tension between the USA and China may prevent the Australian dollar from rising. Trump will perfectly inflate the situation during its election campaign, and it will hit all risky assets, including the Australian dollar.
During the American session, gold fell in price. Due to the rapid growth of stock markets, capital inevitably flows from the safe haven assets to risky assets. Probably, profit fixation has already started by the end of the month. Gold traded at the level of $1713 per ounce and came to the next support line.
What’s waiting for us today?
09.30 Speech by ECB Chairman Christine Lagarde
20.00 Fed minutes
22.30 Weekly crude oil reserves in the USA
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