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European Forex news roundup: Cautious optimism in the face of the omicron verdict

  • 06 December, 2021
  • 4:18 pm EET

European Forex news roundup: Cautious optimism in the face of the omicron verdict

Forex market news for the European AM session on December 6, 2021

So far, risk trades are breathing a little easier as the market continues to reserve judgment on the omicron variation for the time being. The research and data continue to suggest that, while the virus strain is highly transmissible, it may be less severe than previously thought.

But, once again, the information provided is limited, making it difficult to draw clear conclusions for the time being.

However, following last week’s pounding, markets are inching marginally higher, with European indices up 0.5 % to 0.9 % . Meanwhile, the S&P500 futures are currently up roughly 0.2 % .

While equities are bullish, there is clearly room for caution since they are caught between virus fears and concerns about the Fed tightening at a faster rate.

Elsewhere, 10-year Treasury yields are rising, rising roughly 5 basis points to 1.39 % , which is at least helping with the risk attitude.

As a result, the dollar is trading unevenly, with gains against the euro and yen but losses against the commodity currency bloc.

For the most part, EUR/USD is hovering around 1.1280-00, while USD/JPY is edging up to 113.10-20 on the session.

The pound has performed admirably, rising 0.3 % from 1.3240 to 1.3270-80. However, commodities currencies are outperforming, with the aussie and loonie performing particularly strongly.

The AUD/USD pair is rebounding off support around 0.7000 to 0.7040, while the USD/CAD pair is profiting from higher oil prices, remaining well around 1.2800 throughout the whole of European morning trade.

While the market is taking a breather, keep in mind that virus fears are still a factor, and mood is still a little shaky following last week’s tremors.

 

Markets News : 

  • AUD leads, CHF lags on the day
  • European equities higher; S&P 500 futures up 0.2%
  • US 10-year yields up 4.6 bps to 1.388%
  • Gold down 0.3% to $1,778
  • WTI up 3.3% to $68.40
  • S&P 500 futures +0.5%
  • Bitcoin¬† $48,429

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