Dip buying Monday

Dip buying Monday
Friday's sharp decline in the markets seems to be forgotten (although not entirely), and sentiment notably improved on Monday, sending risk assets sharply higher.
Friday's panic selling following the new COVID strain looks to be overdone, as South African health experts have indicated that the symptoms from the new variant have been mild so far. At the same time, drugmaker Moderna suggested Sunday it could roll out a reformulated vaccine early next year.

Should the virus spread more quickly, but it is less dangerous and lethal, it could actually be good news for the world. Therefore, the panic selling changed into panic buying on Monday.

US stock futures were up 1%, EU bourses rose more significantly, and oil advanced nearly 5%, pushing the WTI benchmark back above 70 USD. 

The US yields rose (along with rate hike expectations), and the EURUSD pair declined below 1.13 while commodity-linked currencies advanced. Both gold and silver were stronger today, following a rollercoaster ride on Friday.

Later in the day, the EU consumer confidence along with business climate data for November are due. After that, German CPI numbers will be released, with the year-on-year inflation expected to rise to 5.% in November, up from 4.5% in October.

During the US session, pending home sales for October are forecast to improve slightly, while the Dallas Fed Manufacturing Business Index will be published. Currently;y, there is no consensus for the index. 

Additionally, several central bank governors have their speeches today, including ECB's Lagarde, Fed's Powell, and BoC's Macklem. Therefore, volatility could be elevated in those currencies after their remarks. 
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