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Dollar dips as ‘Build back better’ might not pass

“Success is often achieved by those who don’t know that failure is inevitable.” – Coco Chanel

 

 

 

HEADLINES

 

 

 

  • Dollar on back foot as Treasury yields soften, Omicron keeps markets on edge
  • Most Asian currencies, stocks rise, but Omicron worries loom
  • Oil prices climb but worries over Omicron linger
  • Gold hemmed in tight range as weaker dollar counters improved risk sentiment
  • Wall Street skids on Omicron worry, obstacle to Biden social-spending package

 

 

 

FOREX

 

 

Dollar on back foot as Treasury yields soften, Omicron keeps markets on edge

 

The dollar hovered below recent highs on Tuesday having lost ground overnight after a blow to Democratic spending plans in Washington, but worries about the Omicron coronavirus variant kept risk currencies in check.

It pulled back on Monday, finishing the session down 0.12% after U.S. Senator Joe Manchin, a moderate Democrat who is key to President Joe Biden's hopes of passing a $1.75 trillion domestic investment bill - known as Build Back Better - said on Sunday he would not support the package.

 

Most Asian currencies, stocks rise, but Omicron worries loom

 

Most Asian emerging currencies and equities traded in the positive territory on Tuesday, with the Indian rupee and Malaysian ringgit leading gains, but markets remained under pressure amid the overarching effects of the Omicron variant.

 

 

COMMODITIES

 

 

Oil prices climb but worries over Omicron linger

 

Oil prices rose on Tuesday, though investors remained worried about the rapid spread of the Omicron coronavirus variant globally, prompting countries to consider more restrictions potentially denting fuel demand.

New Zealand delayed the planned reopening of its international border because of the sweeping spread of Omicron around the world on Tuesday, as several other countries reimposed social distancing measures.

 

Gold hemmed in tight range as weaker dollar counters improved risk sentiment

 

Gold prices were stuck in a tight range on Tuesday as a slightly weaker dollar countered an improvement in risk sentiment, while a surge in cases due to the Omicron coronavirus variant persist as a worry for investors.

The U.S. dollar index hovered below recent highs, having lost ground overnight after a blow to Democratic spending plans in Washington. A weaker dollar makes the greenback-priced bullion more appealing for overseas buyers.

 

 

STOCKS

 

 

Wall Street skids on Omicron worry, obstacle to Biden social-spending package

 

Wall Street's main indexes dropped more than 1% on Monday as investors worried about the Omicron COVID-19 variant potentially undercutting the economic rebound and a critical setback to President Joe Biden's social-spending bill. 

Coronavirus cases surged in New York City and around the United States over the weekend, dashing hopes for a more normal holiday season. Britain's leader said he would take more steps to slow the spread of Omicron if needed, after the Netherlands began a fourth lockdown and as other European nations considered restrictions.

 

 

CHART

 

 

Wall Street 30 – Daily Candlesticks

Source: GKFX Prime Metatrader 4

WS30 just bounced off the 200 day simple moving average and remains inside a rising channel. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar


 

 

SOURCE

 

 

 

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/markets/europe/wall-street-skids-omicron-worry-obstacle-biden-social-spending-package-2021-12-20/
https://www.reuters.com/markets/europe/dollar-back-foot-treasury-yields-soften-omicron-keeps-markets-edge-2021-12-21/
https://www.investing.com/news/commodities-news/oil-prices-edge-higher-but-investor-worries-on-omicron-spread-remain-2718538
https://www.reuters.com/markets/europe/dollar-back-foot-treasury-yields-soften-omicron-keeps-markets-edge-2021-12-21/

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