RISK WARNING

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. See our full Risk Disclosure and Terms of Business for further details.

Search LOGIN

Forex volatility highest in 9 months

“Invest for the long haul. Don’t get too greedy and don’t get too scared.” - Shelby M.C. Davis

 

 

HEADLINES

 

 

  • Volatility rules currencies as traders fret over Omicron, Fed tightening
  • Oil rises as OPEC+ sticks to January output hike
  • Gold dips as Fed’s hawkish rhetoric dampens appeal
  • Stocks rebound sharply from omicron sell-off, Dow rises more than 600 points
  • Three Omicron scenarios for the global economy – ING

 

 

FOREX

 

 

Volatility rules currencies as traders fret over Omicron, Fed tightening

 

Foreign-exchange market volatility hovered near a nine-month peak on Thursday as traders weighed the risks posed by a more hawkish Federal Reserve amid ongoing uncertainty about the threat from Omicron.

The battered British pound regained some composure following a slide to an 11-month low, but the the South African rand was little changed after plunging 1% on Wednesday.

 

 

COMMODITIES

 

 

Oil rises as OPEC+ sticks to January output hike

 

OPEC and non-OPEC oil producers, an influential group known as OPEC+, decided on Thursday to stick to a previously agreed upon plan of hiking output by 400,000 barrels per day in January.

However the alliance said in a statement that “the meeting remains in session,” meaning they can “make immediate adjustments” should the current market conditions shift.

 

Gold dips as Fed’s hawkish rhetoric dampens appeal

 

Gold prices eased on Thursday as investors bet the U.S. Federal Reserve would taper its bond purchases faster to tackle surging inflation despite economic recovery concerns amid the new Omicron coronavirus variant.

 

 

STOCKS

 

 

Stocks rebound sharply from omicron sell-off, Dow rises more than 600 points

 

Stocks rebounded sharply on Thursday, following an Omicron-driven sell-off in the previous session, as cyclical names made back some of their recent losses.

Airline, casino and energy stocks led the gainers on Thursday, rebounding from Wednesday’s market rout.

 

 

ANALYSIS

 

 

Three Omicron scenarios for the global economy – ING

 

1 Optimistic Omicron

 

“Omicron proves to be a ‘storm in a teacup’. The Federal Reserve accelerates its taper in December and gears up for three rate hikes in 2022.

 

2 Omicron ‘difficult’ but not a ‘disaster’

 

“This is loosely our base case. Omicron doesn’t help Europe at a time of spiking cases and offers more justification for more aggressive action in the run-up to Christmas. But high vaccine rates and the arrival of boosters mean the continent (including the UK) comes off more lightly than other parts of the world.

 

3 Omicron deals significant blow to the recovery

 

“We expect a dip in first-quarter GDP in the major developed economies, albeit not as deep as in early-2021. But the subsequent recovery could be gradual.

 

 

CHART

 

 

Wall Street 30 – Daily Candlesticks

Source: GKFX Prime Metatrader 4

WS30 has rebounded from the bottom of a rising channel. A break below the channel would signify a new downtrend on the daily chart. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar


 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.cnbc.com/2021/12/02/opec-meeting-oil-supply-in-focus-amid-omicron-covid-variant-fears.html
https://www.cnbc.com/2021/12/02/gold-markets-dollar-central-banks-omicron-covid-variant.html
https://www.cnbc.com/2021/12/02/forex-markets-australian-dollar-south-african-rand-omicron-covid-variant.html
https://www.fxstreet.com/news/three-omicron-scenarios-for-the-global-economy-ing-202112021440

Topics :