Futures on the US stock indices perked up amid welcome vaccine news. At the same time, the US dollar has been weighed down by the rally in the equity market. The US currency has lost some gains of the late November. The USD/CAD pair is trading lower. Bitcoin is 4% down today.
Today the US stock indices opened with a sharp jump, testing new record highs. The rally was propelled by the news that mass vaccination is around the corner.
The Dow Jones surged 1.01%. The Nasdaq rose 0.93%. The S&P 500 climbed 1.14%
On Monday, the US pharmaceutical company Moderna filed an application for emergency use authorization with the Food and Drug Administration. The application will be reviewed by the advisory committee on December 17.
Today on December 1, Pfizer and BioNTech companies applied for registration of their vaccines in the EU. If this drug is approved, it will be available across the EU this month that is in the nearest weeks.
Meanwhile, the US dollar has been bruised by the news which cemented optimism about the rapid economic recovery. So, investors are shifting focus towards riskier assets. Thus, the US dollar is losing ground, having shed some gains of the late November rally. Its index slipped 0.3% against a basket of six major rivals to trade at 91.736. So, the index is consolidating losses around the lowest level in 30 months.
The US dollar is extending weakness against its Canadian counterpart. The USD/CAD pair is 0.17% lower today trading at 1.2963.
Bitcoin grew 4% in the European trade heading for the psychological level of 20,000 dollars per token. However, by the moment of this news release, the most popular cryptocurrency developed a slide. In the American session, bitcoin shed nearly 3.73% to trade at 18,747 dollars per token.
Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin are speaking before Congress today. They will appear on Capitol Hill together for the first time since Mnuchin rejected extension of four lending programs which are viewed by the central bank as vital to support the US economy amid the crisis. Market participants stoke fears over the economic recovery as yesterday California’s Governor announced that he would have to impose a new stay-home directive with the aim of curbing a healthcare crisis in hospitals.