Covid-19 Vaccine Trials Boost Sentiment, RBNZ Decides on Rates

Global Equities Skyrocket on Positive Vaccine News

The US dollar traded mixed against the other G10 currencies on Monday and during the Asian morning Tuesday. It gained against CHF, JPY, EUR, and AUD in that order, while it underperformed versus NOK and NZD. The greenback was found virtually unchanged against GBP, CAD, and SEK.

Euro Stoxx 50 — Technical Outlook

Yesterday, the Euro Stoxx 50 index moved sharply to the upside, breaking above its medium-term downside resistance line taken from the high of July 21st. The price came very close to testing the highest point of July, at 3450, but retraced back down a bit. Although, at some point, we might see a bit of a correction lower, overall, we will continue aiming higher.

RBNZ Decides on Monetary Policy

As for tonight, during the Asian morning Wednesday, the RBNZ decides on monetary policy. When they last met, policymakers of this Bank kept their Official Cash Rate (OCR) and their Large-Scale Asset Purchase (LSAP) program unchanged, repeating that further monetary stimulus may be needed in the foreseeable future, including a Funding for Lending Program, a negative OCR, and purchases of foreign assets.

NZD/CHF — Technical Outlook

NZD/CHF had a good run to the upside, yesterday, moving further away from its short-term upside support line drawn from the low of October 20th. The pair found some resistance near the 0.6246 barrier, which is an intraday swing low of June 8th and marked by an intraday swing high of June 9th. Even though we might see a bit of a correction lower, still, if the above-mentioned upside line remains intact, we will stay positive, at least with the near-term outlook.

As for Today’s Events

During the early European morning, we already got the UK employment report for September. The unemployment rate rose to 4.8% from 4.5%, but both the including and excluding bonuses earnings rates rose by more than anticipated.

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