The market mood remains upbeat after a risk rally on Monday, driven by hopes of a vaccine, a Franco-German fund plan, a bounce in Chinese oil usage, and the Fed’s commitment to supporting the economy.
Moderna, a Massachusetts-based pharmaceutical firm said its immunization candidate to COVID-19 showed promising results, as the eight people participating in the experiment produced antibodies.
France and Germany called for the creation of a 500 billion euro ($543 billion) Recovery Fund able to offer grants to the countries and regions hardest hit by the coronavirus crisis.
The euro hovered near a two-week top at $1.0935. The safe haven yen eased on the greenback to be last at 107.40 per dollar. Pound trade higher against the dollar extending its gains above 1.22 amid an unexpected dip in the unemployment rate. Gold fell after shooting to the highest since 2012.
On Wall Street overnight, the benchmark S&P 500 posted its biggest one-day percentage gain in almost six weeks, gaining 3.15%. The Dow Jones Industrial Average rose 3.85% and the Nasdaq Composite added 2.44%.
Oil prices jumped to their highest in over two months, as the easing of global lockdowns boosted hopes of economic activity and as producers appeared to be following through with planned production cuts. Brent crude was last up 1.24%, or 43 cents, at $35.21. U.S. crude jumped 2.7%, or 87 cents, to $32.69.
Market participants now look forward to the release of the forward-looking German ZEW survey on economic sentiment for May. Later during the early North American session, the US housing market data – Building Permits and Housing Starts – might influence the USD price.