Preliminary studies show that the Omicron variant leads to less severe infections and lower rates of hospitalizations compared to other strains. Global equity markets are taking this news as optimistic and continue their march higher amid thin trading volumes. Markets will watch a slew of US data out today including PCE for November, jobless claims, personal income and spending and durable goods.
December 23, 2021
EUR/USD 1.1302 GBP/USD 1.3402 USD/CAD 1.2822 AUD/USD 0.7228 USD/JPY 114.41 USD/CNH 6.3774 USD/ILS 3.1568 USD/MXN 20.6735 USD/CHF 0.9202 USD/INR 75.2450 USD/BRL 5.6915 USD/SGD 1.3605 USD/DKK 6.5800 USD/SEK 9.1160 USD/NOK 8.8540
The dollar is mixed versus peer currencies, moving higher versus the Japanese yen and the euro, but lower versus the pound, loonie and aussie. November's PCE deflator increased by 5.7% YoY, reflecting increases in both goods and services. Durables goods orders increased by the most in 6 months as demand picked up for aircraft, motor vehicles and metals.GBPSterling climbed versus the dollar above key technical retracement levels at $1.3411. Yesterday’s GDP reading for the UK missed market expectations, however, market bulls persisted. Sterling sits at one-month highs.EUR
EUR faced selling pressure this morning to end a three-day win streak in low volume trading in the run-up to Christmas.CAD
CAD climbed higher versus the greenback for the third session on improved market sentiment surrounding Omicron, and as oil futures rose above $73 a barrel.ASIA/PACIFIC
Aussie outperformed along with other commodity currencies, rising to one-month highs versus the greenback.
Despite JPY gaining some ground on the dollar, the USDJPY pair stabilized above resistance levels and is positioned to continue uptrend.
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