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America’s Roundup: Dollar retreats as Omicron worries, Wall Street closes higher, Gold little changed, Oil price edges higher on waning fears of Omicron's effects-December 9th,2021

Posted at 09 December 2021 / Categories Market Roundups


Market Roundup

• US Mortgage Refinance Index 2,511.5,2,304.5 previous

• US Mortgage Market Index 616.4, 604.2 previous

•   Canada BoC Interest Rate Decision 0.25%,0.25% forecast,0.25% previous

•   US Oct JOLTs Job Openings  11.033M, 10.369M forecast, 10.438M previous

•   US Gasoline Inventories 3.882M,1.798M forecast, 4.029M previous

•   US Cushing Crude Oil Inventories 2.373M  ,1.159M previous

•   US Crude Oil Inventories -0.240M, -1.705M forecast, -0.910M previous

Looking Ahead - Economic Data (GMT)

•  07:00 China Nov CPI (YoY)  2.5% forecast, 1.5% previous

• 07:00 China Nov PPI (YoY)  12.4% forecast, 13.5% previous

• 07:00 China Nov CPI (MoM)  0.3% forecast, 0.7% previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Currencies Summary

EUR/USD: The euro recovered ground against dollar on Wednesday as fears the Omicron variant would knock economies off course eased. Currency markets were generally calm as stocks extended their rebound and investors took comfort from signs the latest COVID-19 variant would not derail the economic recovery. The euro edged 0.05% higher to $1.1347, after touching its lowest since Nov. 26 at $1.1228. Immediate resistance can be seen at 1.1369 (38.2% fib), an upside break can trigger rise towards 1.1390 (21 DMA).On the downside, immediate support is seen at 1.1309(9DMA), a break below could take the pair towards 1.1289 (38.2% fib).

GBP/USD: Sterling declined the dollar on Wednesday as sterling attracted sellers  before U.S. data and a Bank of England policy meeting in which policymakers may keep interest rates on hold. Money markets are assigning a 58% probability of a 15 bps rate increase next week, down from a nearly 70% probability two weeks ago.The Bank of England may hold off again next week on becoming the world's first big central bank to raise interest rates from their pandemic lows, due to the emergence of the Omicron variant of the coronavirus. Immediate resistance can be seen at 1.3249(50%fib), an upside break can trigger rise towards 1.3311(61.8%fib).On the downside, immediate support is seen at 1.3183 (38.2%fib), a break below could take the pair towards 1.3109 (23.6%fib).

USD/CAD: The loonie was lower against the dollar on Wednesday as the Bank of Canada disappointed some investors who expected a move to a more aggressive stance, with the currency falling from its highest level in nearly three weeks. The BoC held its benchmark interest rate at 0.25%, as expected, and maintained its guidance that a first interest rate hike could come in April 2022. Investors were on guard for a hawkish shift after recent domestic data showed strength in inflation, employment and gross domestic product growth. The Canadian dollar was trading 0.1% lower at 1.2655  to the greenback. Immediate resistance can be seen at 1.2691 (38.2%fib), an upside break can trigger rise towards 1.2747 (23.6%fib).On the downside, immediate support is seen at 1.2631 (50%fib), a break below could take the pair towards 1.2580 (61.8%fib).

USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as easing concerns about the economic hit from the Omicron COVID-19 variant helped support riskier currencies. Investors' appetite for riskier assets improved this week amid reports that people infected with the Omicron variant in South Africa had only shown mild symptoms. The U.S. central bank is scheduled to hold its final policy meeting of the year next week, when an increased pace of tapering its bond purchases is widely expected. Dollar was 0.14% higher against the yen at 113.70 yen. Strong resistance can be seen at 113.93 (23.6%fib), an upside break can trigger rise towards 114.53 (Nov 19th high).On the downside, immediate support is seen at 113.30 (38.2%fib), a break below could take the pair towards 112.81(50%fib).

Equities Recap

European stocks ended a volatile session lower on Wednesday after marking their strongest two-day gain in more than a year, with tech and luxury stocks reversing strong gains as investors pitted vaccine reassurances against COVID-19 curbs.

UK's benchmark FTSE 100 closed down by  0.03percent, Germany's Dax ended down by 0.80 percent, France’s CAC finished the day down by 0.72 percent.

Wall Street closed slightly higher on Wednesday, and all three major indices posted their third consecutive day of gains after test data showed Pfizer and BioNTech's COVID19 vaccine  offered some protection against the new variant of Omicron.

Dow Jones closed up  by  0.10% percent, S&P 500 closed down by 0.31% percent, Nasdaq settled up by 0.64%  percent.

Treasuries Recap

The benchmark U.S. 10-year Treasury yield rose modestly on Wednesday, as investors weighed encouraging vaccine news on the new Omicron variant against the rapid spread of cases.

The yield on 10-year Treasury notes was up 2.8 basis points to 1.508%. The three-day climb in yields marks the longest streak of gains since mid-October.

Commodities Recap

Gold prices were little changed on Wednesday, with a subdued dollar offsetting firmer U.S. Treasury yields, as investors squared positions in the run-up to U.S. consumer prices data this week.

Spot gold was nearly flat at $1,784.01 per ounce by 01:48 p.m. ET (1848 GMT), retreating from the session's peak of$1,792.90.U.S. gold futures settled mostly unchanged at $1,785.50.

Oil prices ended higher in a back-and-forth session on Wednesday, maintaining a positive tone as investors no longer expect the Omicron coronavirus variant to derail global economic growth.

Brent crude futures settled at US$75.82, up 38 cents, or 0.5%. U.S. West Texas Intermediate crude ended at $72.36 a barrel, up 31 cents or 0.4%.


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