Omicron tops headlines as countries hustle to contain the variant's spread and keep hospitalizations down. The US works to increase testing capacity, as the UK has not ruled out additional restrictions ahead of Christmas. The World Economic Forum has postponed its annual meeting in Davos, Switzerland. Financial markets are in a strong risk-off mood heading into year-end.
Monday: US Leading Index
Wednesday: UK GDP
Thursday: US Initial Jobless Claims, U of Mich sentiment, US Durable Goods Orders
December 20, 2021
EUR/USD 1.1300 GBP/USD 1.3230 USD/CAD 1.2947 AUD/USD 0.7120 USD/JPY 113.43 USD/CNH 6.3752 USD/ILS 3.1635 USD/MXN 20.7540 USD/CHF 0.9213 USD/INR 75.9150 USD/BRL 5.7045 USD/SGD 1.3663 USD/DKK 6.5820 USD/SEK 9.1265 USD/NOK 9.0480
The dollar is trading a bit lower amid a drop in US treasury yields. The President’s Build Back Better plan seems dead in the water following Senator Manchin’s (D-WV) comments that he is unable to support it due to the massive price tag amid surging inflation and the speed at which it pivots from traditional energy sources. Dems are now on the hook to form a new proposal focusing on fewer programs.
The Fed's decision to increase its pace of tapering last week contributed to investor uncertainty in the 2022 outlook.GBP
Health Secretary Sayid Javid commented that the UK will not rule out further restrictions before Christmas. The pound slipped 0.1% versus the dollar amid a drop in gilt yields.EUR
Euro is stronger versus the dollar this morning amid short covering as eurozone braces for lockdown measures. Last week’s low of $1.1222 is seen as nearby support.CAD
The loonie slides alongside other commodity currencies as markets favor safe havens and oil prices are lower by more than 4% over the weekend.ASIA/PACIFIC
The JPY is up slightly within its role as a safe haven currency.
The Australian dollar dipped briefly below $0.71 amid investor jitters.
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