The dollar is back down near the lows for the day again
The market is getting a real jump from the vaccine story here, and that is leading to a rousing reception in risk trades as US futures soar higher on the day while bonds sell off.
US futures are pointing to fresh all-time highs at the open later, with airlines and leisure stocks getting a major boost on the news. Meanwhile, 10-year Treasury yields have jumped up by over 9 bps to back above 0.90%:
Elsewhere, oil is up by over 7% in a push back above $40 from around $38 earlier.
In the currencies space, this is seeing the dollar slump across the board alongside the yen. EUR/USD is back up near 1.1900 while AUD/USD is pushing gains of over 0.8% to 0.7320. Meanwhile, USD/JPY has jumped from 103.70 to 104.30 currently.
The Pfizer story reveals that they may push for emergency-use and distribution by the year-end and that is indubitably great news in addressing the health crisis, especially with record-breaking virus cases across the US in the past week.
This could prove to be a game-changer in the battle against the virus, but we’ll see once more details surface on the distribution process and how it will be handled.
There’s plenty of optimism surely to take away from the story but as gains start to look frothy, be wary of squeezes in profit-taking activity.