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Gold jumps after US inflation reaches a 39-year high |GKFX

“Everyday I assume every position I have is wrong.” - Paul Tudor Jones

 

 

 

HEADLINES

 

 

 

  • Dollar edges down as risk-sensitive currencies advance
  • EM currencies climb to 2-week high on Omicron relief, lira extends rebound
  • Gold Closes at 5-Week Highs, Boosted by US Inflation Risk
  • Oil up 4% on Week in Volatile, Omicron-Impacted Trade
  • S&P 500 hits record close as Omicron fears ebb
  • EUR/USD to remain under pressure as energy price shock in Europe intensifies – MUFG

*Note: Daily articles will resume on January 3rd. Happy holidays and Happy New Year!

 

 

 

FOREX

 

 

 

Dollar edges down as risk-sensitive currencies advance

 

The dollar edged lower against a basket of currencies on Thursday, as easing fears of fallout from the Omicron coronavirus variant supported higher-risk currencies such as the Australian dollar and British pound.

Ahead of the holidays and extended long weekend in the United States, most major currency pairs clung to narrow ranges.

Upbeat news on the vaccines and Omicron-related hospitalizations also helped boost investors' appetite for risk, lifting stocks and pushing U.S. Treasury yields higher.

 

EM currencies climb to 2-week high on Omicron relief, lira extends rebound

 

Emerging market currencies climbed to two-week highs on Thursday and stocks gained for a third session in a row on expectations that the global economy can cope with the fast-spreading Omicron coronavirus variant.

 

 

 

COMMODITIES

 

 

 

Gold Closes at 5-Week Highs, Boosted by US Inflation Risk

 

Gold settled on Thursday at its highest level in five weeks, boosted by U.S. inflation risk after latest data showed the world’s largest economy facing its worst price pressures in four decades.

Historical data showed it to be the largest annual growth in the so-called PCE in 39 years. Prior to this, data showed the U.S. Consumer Price Index, or CPI, rising 6.8% in the year to November, growing at its fastest pace since 1982. U.S. producer prices also jumped by a record 9.6% year-on-year in November.

 

Oil up 4% on Week in Volatile, Omicron-Impacted Trade

 

Oil prices jumped more than 4% on the week, rebounding from last week’s slump, as energy markets were caught in a wave of year-end volatility worsened by Covid’s Omicron variant.

Thursday is the last trading day of this week, with U.S. markets closed on Friday in observation of Saturday’s Christmas holiday.

 

 

 

STOCKS

 

 

 

S&P 500 hits record close as Omicron fears ebb

 

Wall Street's main indexes posted solid gains for a third straight session on Thursday, with the S&P 500 marking a record-high close, as encouraging developments gave investors more ease about the economic impact of the Omicron coronavirus variant.

 

 

 

ANALYSIS

 

 

 

EUR/USD to remain under pressure as energy price shock in Europe intensifies – MUFG

 

“Recent price action has reinforced our view that the energy price shock will hit the European economies harder than the US and further boosts the relative appeal of the US dollar heading into early next year.”

“The upward pressure on European gas prices reflects in part the risk of disruption to supplies from Russia in response to risk of another invasion of the Ukraine.”

 

 

 

CHART

 

 

 

British pound / US dollar – 4-Hour Candlesticks

Source: GKFX Prime Metatrader 4

GBP/USD has broken above short-term resistance after finding support at 1.32. - Prepared by Trading Writers*

 

 

 

CALENDAR

 

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar


 

 

SOURCE

 

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/eur-usd-to-remain-under-pressure-as-energy-price-shock-in-europe-intensifies-mufg-202112231509
https://www.reuters.com/markets/europe/sp-500-hits-record-close-omicron-fears-ebb-2021-12-23/
https://www.investing.com/news/commodities-news/gold-closes-at-5week-highs-boosted-by-us-inflation-risk-2722677
https://www.investing.com/news/commodities-news/oil-up-4-on-week-in-volatile-omicronimpacted-trade-2722633

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