US Futures Kick-Off the Week with An Upside Rally; Dollar Falls

Equities

Futures tied to major US stock indices edged higher during the first trading hours of the week. Last week, Pfizer and BioNtech announced their late-stage trial results, presenting a vaccine with a 90% efficacy rate against Covid19. Moderna, which is also working on a promising vaccine, will likely announce the results of the phase 3 trial soon. The rotation of funds was obvious as stocks that suffered the most from Covid19 rose following the headline, while stay-at-home Nasdaq was softer. Market participants are optimistic about a vaccine that could put an end to Covid19 spread, and bring life back to normal. The Dow Jones Industrial Average futures rose to 29722. the S&P500 futures rallied to 3616, and Nasdaq advanced to 12058.

USD

The dollar index, which measures the performance of the U.S. dollar against a basket of major currencies, declined to 92.53, the lowest since the 9th of November as risk sentiment improved. Despite the rising coronavirus cases around the world, investors are optimistic about a recovery that would be triggered by the vaccine from top pharmaceutical companies. The EURUSD inched higher to $1.1856, the GBPUSD rose to $1.3233, and the AUDUSD rose to $0.7297.

Metals

Precious metals prices traded sideways up as the dollar drifted lower. The price of a gold ounce rose to $1899, the price of a silver ounce raced higher to $25.07, while palladium hovered in a tight range between $2310-2370.

Oil

Oil prices continued march higher after pausing, supported by risk-on sentiment. The optimism circulating in the market about vaccines that would spur economic recovery boosted the flow to risk assets and oil. The West Texas Intermediate crude December delivery rose to $41.18, and Brent Blend January delivery rallied to $43.72.

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