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Bank of Canada keep rates steady

“Business opportunities are like buses, there’s always another one coming.” – Richard Branson

 

 

 

HEADLINES

 

 

 

  • Dollar retreats as Omicron worries ease; Aussie rises
  • Bank of Canada keeps interest rates unchanged, warns of Omicron uncertainty
  • GBP/USD Slips to Fresh 1yr Low as Goldman Sees No BoE Rate Until February
  • Gold stalls as investors look for direction from Fed, inflation dataOil Rally Kept Alive, Despite Unhelpful U.S. Inventories
  • Wall Street closes higher up as vaccine update feeds optimism

 

 

FOREX

 

 

Dollar retreats as Omicron worries ease; Aussie rises

 

The dollar fell against several of its major counterparts on Wednesday, as easing concerns about the economic hit from the Omicron COVID-19 variant helped support riskier currencies, with the Australian dollar on pace to notch a third straight session of gains.

 

Bank of Canada keeps interest rates unchanged, warns of Omicron uncertainty

 

The Bank of Canada on Wednesday held its key overnight interest rate unchanged, as expected, and said inflation was broadening even as it warned that the Omicron coronavirus variant has created "renewed uncertainty." The Canadian dollar was trading nearly unchanged at 1.2641 to the greenback, or 79.11 U.S. cents, after the decision, pulling back from its strongest level in nearly three weeks.

 

GBP/USD Slips to Fresh 1yr Low as Goldman Sees No BoE Rate Until February

 

The pound fell to a fresh one-year low against the dollar, and the bleeding could continue as Goldman Sachs became the latest bank to throw in the towel on an imminent Bank of England rate. Goldman Sachs said it now expected the BoE stand pat on rates until February, a sharp contrast from its previous forecast for a 15 basis points rate hike in December.

 

 

COMMODITIES

 

 

Gold stalls as investors look for direction from Fed, inflation data

 

Gold prices were little changed on Wednesday, with a subdued dollar offsetting firmer U.S. Treasury yields, as investors squared positions in the run-up to U.S. consumer prices data this week. Gold was anchored at $1,780-$1,800 an ounce, awaiting cues from the U.S. Federal Reserve and U.S. Consumer Price Index (CPI) data.

 

Oil Rally Kept Alive, Despite Unhelpful U.S. Inventories

 

A beefy build in U.S. fuel stockpiles for a second week in a row didn't dissuade energy bulls from taking their legs off the gas pedal in the oil rally.

Determined to cover more ground from crude’s epic 13% collapse of the past two weeks and possibly bring the market back to above $80 a barrel, oil longs stayed the course on Wednesday, adding a little more to prices after the near 9% rebound of the past two sessions.

 

 

STOCKS

 

 

Wall Street closes higher up as vaccine update feeds optimism

 

Wall Street closed slightly higher on Wednesday, as investors cheered encouraging news about COVID-19 vaccines from Pfizer and BioNTech. Pfizer and BioNTech said their three-shot course of the vaccine was able to neutralize the new Omicron variant in a laboratory test and they could deliver an upgraded vaccine in March 2022 if needed.

 

 

CHART

 

 

Euro / British pound – Daily Candlesticks

Source: GKFX Prime Metatrader 4

EUR/GBP has closed above its 200 DMA for the first time in 11 months and looks set for a possible breakout from the down sloping channel in place since March. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

 

 

Source: FXStreet Economic Calendar


 

 

SOURCE

 

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/boc-preview-forecasts-from-seven-major-banks-inching-ever-closer-to-rate-hikes-202112071600
https://www.reuters.com/markets/europe/wall-street-closes-higher-up-vaccine-update-feeds-optimism-2021-12-08/
https://www.reuters.com/markets/europe/gold-stalls-investors-look-direction-fed-inflation-data-2021-12-08/
https://www.investing.com/news/forex-news/aussie-buoyant-dollar-listless-as-omicron-optimism-lifts-risk-assets-2703532
https://www.investing.com/news/forex-news/gbpusd-slips-to-fresh-1yr-lowas-goldman-sees-no-boe-rate-until-february-2704947

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