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Swiss franc hits 6-year high

“Wealth isn’t primarily determined by investment performance, but by investor behavior.” -Nick Murray

 

 

HEADLINES

 

 

  • Dollar Rebounds; Traders Reassess Omicron Risks
  • Swiss franc rises to six year high as central bank stands back
  • Oil Recovers Some Omicron-Triggered Loss as Risk Unclear
  • Gold futures settle below $1,800 for a 4th straight session
  • S&P 500 Jumps as Investors Swoop Into Tech Following Friday's Rout
  • GBP/USD: Further downside for cable next year as the UK economy appears to be challenging – HSBC

 

 

FOREX

 

 

Dollar Rebounds; Traders Reassess Omicron Risks

 

The dollar traded higher Monday, boosted by higher U.S. Treasury yields as traders considered Friday’s sharp moves on the discovery of the omicron coronavirus variant as overdone. Health experts from South Africa, where the new variant was first detected, have indicated that the symptoms from the omicron variant have been mild so far, although they also pointed out that their population is relatively young, and that the number of 'breakthrough' infections of vaccinated people was significant.

 

Swiss franc rises to six year high as central bank stands back

 

The Swiss National Bank is no longer standing in the way of the franc's appreciation, according to data published on Monday, in an eye-catching change in view of the safe-haven currency's rise to its highest against the euro in more than six years.

The central bank's apparent stance will confound investors who have grown used to the SNB's mantra that it would fight tooth and nail with negative interest rates and foreign currency purchases to restrain the Swissie.

 

 

COMMODITIES

 

 

Oil Recovers Some Omicron-Triggered Loss as Risk Unclear

 

Oil markets recovered some of last week’s stunning loss triggered by panic over the Omicron variant of Covid after some said that the strain might be milder than thought, despite the World Health Organization reporting that it carried a very high risk of infection. Crude prices rose as much as 5% in Monday’s early trade after Friday’s dump of about 12%, which was the biggest one-day percentage loss in oil since April 2020.

 

Gold futures settle below $1,800 for a 4th straight session

 

Gold futures declined on Monday, with prices for the haven metal settling below $1,800 an ounce for a fourth session in a row — failing to find much support even as the emergence of a new coronavirus variant sparked a U.S. stock market selloff on Black Friday.

 

 

STOCKS

 

 

S&P 500 Jumps as Investors Swoop Into Tech Following Friday's Rout

 

The S&P 500 climbed Monday, shrugging off lingering worries about the impact of the new Omicron Covid-19 variant as investors piled into beaten down tech stocks following a rout last week. Apple was up more than 2% after HSBC raised its price target on the stock as supply chain issues that weighed on the production are expected to wane.

 

 

ANALYSIS

 

 

GBP/USD: Further downside for cable next year as the UK economy appears to be challenging – HSBC

 

“The 2022 outlook for the UK economy appears to be challenging, amid an uneven economic recovery, Brexit frictions, and ongoing negotiations regarding the Northern Ireland protocol. These may somewhat explain the persistently low expectations of the UK’s ‘terminal’ interest rate, which makes the GBP vulnerable to a shift towards potentially faster tightening cycle in other G10 currencies, especially the USD.” 

“The GBP will probably also face a deteriorating current account deficit when the UK economy normalises.”

 

 

CHART

 

 

EUR/JPY – Daily Candlesticks

Source: GKFX Prime Metatrader 4

EUR/JPY is testing major support at 128 and the neckline of a possible double top. A break below could usher in a new long term downtrend. - 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/gbp-usd-further-downside-for-cable-next-year-as-the-uk-economy-appears-to-be-challenging-hsbc-202111290902
https://www.investing.com/news/commodities-news/oil-recovers-some-omicrontriggered-loss-as-risk-unclear-2693330
https://www.investing.com/news/stock-market-news/sp-500-jumps-as-investors-swoop-into-tech-following-fridays-rout-2693328
https://www.marketwatch.com/story/gold-prices-rise-despite-rally-in-global-stocks-amid-omicron-11638193291
https://www.investing.com/news/economy/analysis--swiss-franc-rises-to-six-year-high-as-central-bank-stands-back-2692775
https://www.investing.com/news/forex-news/dollar-rebounds-traders-reassess-omicron-risks-2692439

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