During the European session, the market’s mood starts to improve, with the European indices traded higher, and weaker in safe-havens.
In the FX markets, the antipodean currencies advanced, with NZD is leading across the board, followed by NZD as investors cheered on vaccine optimism.
On the other hand, both JPY and CHF were the worst performer amid improvement in risk sentiment. However, investors remained concerned about rising COVID-19 infections and lockdowns across the globe.
Meanwhile, the GBP traded higher amid upbeat data in UK retail sales. Also, talks over a post-Brexit trade deal with the EU were suspended after one of the EU negotiators tested positive for Covid.
Ahead of the New York session, we expect that the risk-tone remained the same to support the high-beta currencies and pressured the safe-haven currencies. On the economic front, Canada’s retail sales for September are set to grow better as employment in the sector was good in September.
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