- NZD capitalizes on risk flows early in the US session.
- The US Dollar Index remains in positive territory on Monday.
- The S&P 500 appears to open at new all-time highs.
The pair NZD / USD It gained traction on Monday and rose to its highest level since March 2019 at 0.6851. At time of writing, the pair was up 1.05% on the day at 0.6842.
Risk-sensitive NZD soars on Pfizer news
Risk flows began to dominate financial markets on Monday after Pfizer reported that the coronavirus vaccine it is developing with BioNTech was “more than 90%” effective in the latest trials. With the initial market reaction, US stock futures are higher and S&P 500 futures are gaining more than 4% on the day at 3,650, suggesting that the S&P 500 will open at new all-time highs.
Meanwhile, the dollar remains relatively resilient against its rivals supported by a 12% rise seen in the yield on 10-year US Treasuries. At time of writing, the US Dollar Index was up 0.12% on the day to 92.35.
The US economic docket will not feature any high-level macroeconomic data releases on Monday and the market sentiment is likely to continue to affect movements in major currency pairs.
In the early trading hours of the Asian session, e-card retail sales data will be released from New Zealand, but are likely to be ignored by market participants.
Credits: Forex Street
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