The safe haven Japanese Yen underperformed and could extend losses today. The British Pound outperformed on rising Brexit optimism.US stock indexes are on the rise with energy shares rallying hard amid a rotation trade out of tech stocks.
News that Oxford-AstraZeneca’s vaccine was found to be 70% effective boosted the marker mood. As did president-elect Joe Biden’s pick for the Treasury Secretary, former Federal Reserve Chair Janet Yellen. She is considered market-friendly and likely to cooperate closely with current Chair Jerome Powell.
GBP/ USD closed at a 2 month high on Monday. This Pound is on the brink of testing 1.3396 – 1.3515 resistance zone from late 2019. A bullish ‘Golden Cross’ is supportive after the 20-day Simple Moving Average (SMA) crossed above the 50-day one in late October.
Tuesday’s Asia Pacific Trading Session
The General Services Administration (GSA) effectively confirmed Joe Biden as the winner of the US Presidential elections. This is reducing US political uncertainty. S&P 500 futures point higher.
The economic calendar is relatively bare in the Asian session. The risk sensitive Australian Dollar will look to a speech from Reserve Bank of Australia’s Deputy Governor Guy Debelle. Sentiment, however, could be a bigger driver.
USD/JPY advanced back over 104 – 104.19 inflection zone on Monday Immediate support sits below around 103.65.