The US dollar is off the highs and markets have stabilized after a risk-off day on Monday. US bond yields remain high ahead of a speech by the Fed’s Brainard. Coronavirus statistics remain dire yet vaccinations in the UK have been ramped up. Cryptocurrencies are bouncing after a massive crash on Monday.
US ten-year Treasury yields have been stabilizing at around 1.15% after continuing their climb on Monday. The relative calm allows the greenback to retreat. Raphael Bostic, President of the Atlanta branch of the Federal Reserve, does not seem to support tapering bond buys but seems upbeat on the economy. Lael Brainard, a Governor at the Fed, speaks later in the day and may rock markets.
Coronavirus cases, hospitalizations, and deaths remain high on both sides of the Atlantic in the wake of the holiday season. London and Los Angeles are the current epicenters, yet figures are going in the wrong direction also in Japan.
The UK has boosted its vaccination capacity and has already administered jabs to around 4% of the population. In absolute terms, Britain’s jabs surpass the whole of continental Europe combined. Israel, the world leader with 21%, has yet to see the fruits of the immunization campaign, with COVID-19 infections hitting a new high.
Pfizer and BioNTech are set to increase the production of their vaccines, aiming at two billion doses by year-end.
Coronavirus: Statistics, herd immunity, vaccine calendar and impact on financial markets and currencies
US politics: The US House of Representatives is set to approve a symbolic call on Vice-President Mike Pence to remove President Donald Trump from office using the 25th Amendment. The two men met on Monday for the first time since the riots last week and reportedly agreed to work together until their term expires on January 20. Democrats are set to proceed to impeach Trump on Wednesday.
Investors are overlooking the historic drama and focus on President-elect Joe Biden’s stimulus plans. Gold has recovered, topping the $1,850 level.
US JOLTs job openings for November and the IBD/TIPP Economic Optimism scheme are on the docket on Tuesday.
The Race for Employment in 2021: US job market is the key for the US dollar
Bitcoin has recaptured $36,000 after falling below $31,000 and other cryptocurrencies continue experiencing high volatility. Ethreum is changing hands at above $1,100 and Ripple’s XRP is hovering around $0.30.