Forex News

Uncertainty Affects Financial Markets

Uncertainty Affects Financial Markets

The dollar found some strength during London trading hours, but ended the day lower against most major rivals. The greenback fell despite most European and US indexes closing in the red, and while government bond yields rose to fresh weekly highs. Some profit-taking and the idea that the Fed could ramp up cuts could be the driving force behind the market’s behavior.

Trading was active throughout the day, as investors struggled to understand developments in the corona virus. France, the United Kingdom and Germany have announced restrictive measures amid the escalating epidemic in Europe. On the other hand, Pfizer has said that a dose of its coronavirus booster vaccine is effective against the Omicron variant. Early studies show that people who have had the covid plus two injections or those who have had a third shot are highly protected against the highly mutated strain.

The EUR/USD pair recovered as much as the 1.1350 region, whilst the AUD/USD pair nears 0.7200, regardless of scarce macroeconomic calendars. Plan B: the United Kingdom Prime Minister introduced what he called “plan B” to comprise the modern day coronavirus outbreak. Boris Johnson cited that the range of recent instances are doubling each 2-three days, and introduced a few restrictive measures. From Friday 10 December, face coverings becomes obligatory in maximum public indoor venues, whilst from Monday thirteen December, folks who can can be cautioned to paintings from home.

Finally, and difficulty to parliamentary approval, an NHS Covid Pass becomes obligatory to go into any crowd gathering. GBP/USD plummeted to a clean 2021 low of 1.3244 in advance of the event, although, given the extensive dollar`s weakness, the pair completed the day round 1.3230.  Whereas, Gold continues ranging inside acquainted levels, now buying and selling round $1,786.00 a troy ounce. Crude oil costs ticked marginally higher, with WTI now at $72.forty a barrel.

Asian equities remain largely buoyant on Thursday’s hopes of a stimulus package that will dissipate virus concerns ahead of the European meeting. To reflect the sentiment, non-Japan MSCI Asia Pacific shares rose 0.81% while Japan’s Nikkei 225 shares fell 0.15% at the latest.  Concerns about COVID-19 resurface as virus activity restrictions resume in Germany, France and the UK. However, headlines from major COVID vaccine manufacturers indicate the effectiveness of booster vaccinations to tame a South African strain of corona virus called Omicron.

Stocks in China and Hong Kong remain positive, while Australian stocks are not. Additionally, New Zealand’s NZX 50 was down around 1.5% at the time of the announcement. It is worth noting that while Korea’s KOSPI and Indonesia’s IDX composite index showed modest gains, India’s BSE Sensex fell 0.15% even after the Reserve Bank of India (RBI) froze its monetary policy the day before.