Dollar drops, stocks and metals pop

04/01/2021

The New Year has started in an old fashioned way - the USD remained under pressure, equities continued to rise, and metals are finally waking up from their long slumber. 

The UK is to become the first country to start using the Covid-19 vaccine developed by AstraZeneca and Oxford University, a cheaper and more easily stored alternative to the vaccine developed by Pfizer and BioNTech already in use.

However, it looks like many EU countries, the UK included, will extend their current lockdowns further as cases remain stubbornly wide worldwide. The thing is, if cases are still very elevated during lockdowns, do lockdowns actually work?

From other news, the greenback continues to bleed, which seems to be finally helping precious metals. Both gold and silver exploded higher on Monday, and gold has finally managed to cancel the medium-term downtrend as the metal jumped above the bearish trendline from summer highs.

The Nasdaq index rises toward the psychological 13,000 USD level, while the SP500 index seems ready to tag 3,800 USD soon. The Dow was marching toward 31,000 USD as the melt-up phase continues.

Later in the day, EU and US PMIs are due, which are expected to remain near the last month's levels. 
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