Key Points:

No Brexit deal this week as talks continue

Nasdaq bounces back 2%

DXY creeps higher to 93.00

With the US bond market closed for Veterans Day market volatility was contained. The switching between tech stocks and those that have been hit hard due to Covid reversed somewhat during the US session as the Nasdaq rallied back 2%. The penny has dropped and markets accept that there’s still some time before the world will get back to normal. With the world producing around 4 million cases per week currently, the pharmaceutical companies have an uphill battle in producing quantities to keep pace with the spread. The elderly will be at the front of the queue and are less likely to be considered as big contributors to the economy (cruises excluded). Airlines were the biggest losers pushing the Dow Jones just slightly in to the red at the close. For FX it was a slow grind with the USD slightly firmer across the board and Gold closing back lower once again. The RBNZ were upbeat during their post rate decision conference and we saw a squeeze in the NZD during the Asia session that dragged AUD with it albeit reluctantly. The NZD has held most of its gains just off 20 pips from the highs but AUD/NZD selling has forced the AUD lower from a double top around 0.7220 back to 0.7175 at the close. The loonie has also weakened despite WTI unchanged on the day and Gold failed to break back through 1890 on the topside and met a wave of selling pushing it back lower to 1865 after basing ahead of 1850 once again. Brexit talks remain an ongoing slog and after hitting 0.8860 during the European session the announcement that no deal will be finalised this week saw the pair bounce back to 0.8920. Cable remains susceptible to every headline and fell from 1.3300 to 1.3225. Covid cases continue to climb across Europe and news that several hospitals are buckling under the pressure doesn’t bode well for any short term lockdown producing much relief. Incredibly the US posted another 134,383 in ONE day. The vaccine can’t come soon enough. A slow day for data ahead with UK Industrial Production and GDP along with BoE’s Bailey speaking later during the Europe session before the weekly US jobless claims and CPI.