Forex Today: Markets upbeat on vaccine, Japan selects new PM, Brexit saga moves to parliament

Yohay Elam FXStreet

Here is what you need to know on Monday, September 14:

AstraZeneca's renewal of its coronavirus vaccine test is contributing to a better market mood, favorable for stocks and weighing on the dollar. Japan will have a new prime minister and the UK parliament will debate the controversial internal market bill today, aggravating relations with the EU.

Upbeat mood: The University of Oxford and AstraZeneca will restart their COVID-19 immunization Phase 3 trial in the UK. Pfizer, a larger pharma firm, said that a coronavirus vaccine could be given to Americans before year-end.

S&P 500 futures are on the rise while the dollar is losing ground against most currencies. Gold has been trading in a range around $1,950.

Japan: Cabinet Secretary Yoshihide Suga will likely be elected by the ruling LDP Party to succeed outgoing Prime Minister Shinzo Abe. He is seen as a continuation candidate. The yen is marginally higher amid broad dollar weakness.

GBP/USD is licking its wounds around 1.28, hit by the escalation in the EU-UK relations. The House of Commons will debate the controversial Internal Market Bill on Monday, which breaks international law and angered the bloc. Brussels announced that if the bill is not rescinded by the end of the month, it would slap sanctions.

EUR/USD is on the rise despite rising COVID-19 cases in the old continent. Several members of the European Central Bank reiterated their stance that the euro's value impacts inflation but that the ECB does not target it.

Sino-American tensions: Microsoft's bid to purchase TikTok was rejected, leaving Oracle as the sole contender to buy the popular Chinese video application. It is unclear if the administration would approve the deal.

Oil prices have stabilized after the fall. OPEC and non-OPEC members will convene later in the week to discuss extending production cuts. Compliance has been relatively high yet fears of falling demand persist. Hurricanes are brewing in the Gulf of Mexico and could boost crude prices.

Cryptocurrencies are edging higher, with Bitcoin holding above $10,000 after retreating from the highs last week.

More Lagarde gives the euro some legs, but the rabbit hole is near – how central banks move currencies

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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