Indices continue higher while USD strengthens.

08/02/2021

US indices were trading stronger on Monday morning, with the Nasdaq and SP500 benchmarks rising to new all-time highs.

"For the third week in a row, the number of new cases of Covid-19 reported globally fell last week," WHO Director-General Tedros Adhanom Ghebreyesus said at a press conference last week. "There are still many countries with increasing numbers of cases, but at the global level, this is encouraging news."

However, the drugmaker AstraZeneca said over the weekend that its vaccine appeared to be nearly ineffective against the South African variant of the virus.

Meanwhile, the USD was trying to erase Friday's post NFP losses, and the EURUSD pair was down to 1.2030. The USDJPY pair jumped above 105.60, which pushed the dollar index 0.15% higher. 

It looks like the dollar short-squeeze ain't over yet, and further strengthening of the USD could be in the cards. 

In commodities, gold was down 0.3% to trade at around 1,810 USD, with the latest relief rally probably ending. Should gold decline back below 1,800 USD, the bearish might be confirmed, targeting November lows near 1,770 USD.

On the other hand, oil moved higher again on Monday, and the WTI was 1% stronger, last seen near 57.60 USD.
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