During the European session, the risk tone improved, with the European indices traded higher, and weaker in safe-havens.
In the FX markets, the antipodean currencies advanced, with the NZD is leading across the board, followed by the AUD as Pfizer Inc. announced that its coronavirus vaccine candidate showed 95% efficacy in preventing the virus after final data analysis.
On the other hand, the USD declined further as the surging coronavirus cases in the United States highlighted the need for additional fiscal stimulus to support the economic recovery.
Meanwhile, the GBP was trading higher after UK consumer prices jumped to 0.7% in October of 2020 from 0.5% in September, and above market expectations of 0.6%. Also, optimism surrounding a post-Brexit trade deal as Britain’s chief negotiator David Frost told Prime Minister Boris Johnson to expect an agreement with the EU as soon as early next week.
Ahead of the New York session, we expect that the risk tone remained improved as fresh vaccine optimism from Pfizer will cheer the investors. On the economic front, Canada’s inflation rate for October is set to surge as IVEY PMI reported an increase in the price component.
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