Global stocks decline as the Omicron variant continues to spread. Joe Biden meets setback to his $2trillion spending bill, as Senator Joe Manchin rejects the package.
December 20, 2021
GBP/USD 1.3206 GBP/EUR 1.1718 EUR/USD 1.1269 USD/CAD 1.2928 EUR/CHF 1.0402 EUR/SEK 10.3153 EUR/NOK 10.2445 EUR/DKK 7.4361 USD/ILS 3.1434 AUD/USD 0.7097 NZD/USD 0.6713 USD/SGD 1.3673 USD/JPY 113.42 USD/CNH 6.3858 USD/INR 75.8375 EUR/ILS 3.5431 GBP/ILS 4.1458 USD/ZAR 15.8329
November Retail Sales beat expectations on Friday to print at 4.7%, against forecasts of 4.2%. Despite the strong print, Sterling continued to reverse its gains, losing 0.7% by close of business. GBPUSD has continued to trend lower during the Asian session, down 0.25% so far this morning.
Boris Johnson’s Cabinet continues to come under further pressure as Brexit Minister David Frost resigned over the weekend, citing concerns over further Covid restrictions and the current Brexit stance. Brexit negotiations are still at a standstill, with talks expected to resume in the New Year. Foreign Secretary Liz Truss has been appointed with the task.EUR
The Netherlands has become the first EU country to re-enter a nationwide lockdown, in a bid to slow the spread of the Omicron variant. New restrictions began on Sunday morning and are due to last until at least January 14th.
After losing 0.86% on Friday, the Euro has ticked up 0.1% against the Dollar this morning to trade around the 1.1250 level. Investor sentiment has declined this morning as markets continue to grapple with the uncertainty of the Omicron variant, global stocks plunged with the Euro Stoxx 600 index down over 2%.USD
Senator Joe Manchin shocked the White House yesterday by rejecting Joe Biden’s $2trillion spending package, following weeks of negotiations. Joe Biden and Senate Majority leader Chuck Schumer must now attempt to salvage part of the deal, addressing Manchin’s demands whilst maintaining support from the rest of the Democrats.
The Dollar Spot index was little changed amid waning sentiment, whilst there was a significant sell off in stocks, with US futures on the S&P and Nasdaq down 1.4%. Crude Oil also slid on concerns that travel restrictions will dampen demand.ASIA/PACIFIC
The Aussie and Kiwi Dollars slipped on concerns of tighter restrictions, down 0.2% and 0.4% against the greenback respectively. The Yen advanced along with Japanese government bonds following the setback to President Biden’s spending bill. USDJPY is down 0.2% this morning, its third consecutive day of declines.ILS
The Dollar has reversed some of its losses against the Shekel this morning, trading 0.56% higher. Focus shifts to today’s Inflation expectations for December.Data & Events
Israel – Inflation Expectations
Germany – Bundesbank Monthly Report
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