HomeContributorsFundamental AnalysisGlobal Stocks Rise As FDA Gives Clearance To Pfizer Vaccine

Global Stocks Rise As FDA Gives Clearance To Pfizer Vaccine

The euro remained firm in overnight trading as traders continued to react to the final interest rate decision by the European Central Bank (ECB). The bank did as most analysts were expecting. It left all interest rates unchanged and sounded a bit dovish. The members also decided to boost their asset purchases by another 500 billion euros and extended the duration of their purchases to December 2022. They also hinted that rates would remain at the current levels for at least two more years.

US stocks ended the day at record highs as the financial market remained optimistic about the Covid vaccine. In a statement, the Food and Drug Administration (FDA) endorsed the Covid vaccine developed by Pfizer and BioNTech. This means that the country can start administering the shots in the next few weeks. The UK is already using the vaccine. Traders also reacted to positive news from Disney, which said that Disney+ had about 86.6 million subscribers. Further, the successful Airb&b IPO also boosted sentiment.

The British pound wavered during the American and Asian sessions as traders continued to worry about the likelihood of a no-deal Brexit. This is after talks between Boris Johnson and Ursula von der Leyen ended without a deal. According to the Financial Times, European Union leaders have started to price-in a no-deal Brexit scenario. Still, some analysts believe that the two sides will ultimately reach an agreement before the end of the year.

EUR/USD

The euro rose to an intraday high of 1.2158, which is a few pips below the year-to-date high of 1.2175. On the 30-minute chart, the pair is above the 25-period and 15-period moving averages while the Relative Strength Index (RSI) and the Stochastic oscillator have moved to the overbought level. The pair’s momentum indicator is also above the neutral level. Therefore, the pair will possibly continue rising as bulls aim for the next resistance at 1.2170.

XBR/USD

The XBR/USD pair crossed the 50 mark for the first time since February this year because of the optimism of the vaccine. It is trading at 50.30, which is slightly below the overnight high of 50.90. The pair is also above the 50-day and 25-day exponential moving averages while the accumulation/distribution indicator has continued to rise. The awesome oscillator is also above the neutral level. Therefore, it seems like bulls are now in total control, which means that the pair will likely continue rising.

AUD/USD

The AUD/USD pair rose to the highest level since June 2016 in reaction to the Covid vaccine. The pair is trading at 0.7555, which is significantly higher than June’s high of 0.7415. It is also above the 25-day and 15-day exponential moving averages while the RSI has moved above the overbought level. The momentum indicator has also continued to rise. Therefore, the pair will likely continue rising as bulls aim for the next resistance at 0.7600.

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