As the begging of the European session today, the EUR/USD has gained 0.15 % by early morning on the day, reversing the previous day’s losses, as cautious optimism in the markets reduces demand for the US dollar as a safe haven. The pair is trading between 1.12812-1.13669 until the time of writing, 12:00pm UTC+2. Aside from the Eurozone CPI, the US CB Consumer Confidence for November and the covid updates, as well as Fed Chair Jerome Powell’s testimony, will be on focus today.
On Tuesday, the GBP/USD pair is attempting a minor recovery above 1.3300, as the US dollar continues to fall following the Treasury yields. Fears about the Omicron covid variant are being alleviated, which is helping the market and the pound. The pair is currently trading between 1.33031-1.33710 on the time of writing, 12:00pm UTC+2.
On Tuesday, heading in the European session the USD/JPY pair dropped to a near three-week low. The pair struggled to capitalize on its early gains and was trading around 114.00 level. Concerns about the potential economic consequences of the spread of a new vaccine-resistant variant of the coronavirus ‘‘Omicron’’, has dragged down global risk sentiment.
The AUD/USD pair pared some of its intraday losses and was last seen trading around 0.7115, down 0.20 % for the day. Concerns about the economic consequences of the spread of a new vaccine-resistant variant sparked a new wave of global risk aversion trading.
During the early European session, the NZD/USD pair fell to its lowest level since November 2020. However, the pair has managed to recover a few pips and was last seen trading between 0.67793-0.68368.
USD/CAD is posting small losses while trading below 1.2750. Investors should take into consideration today’s Federal Reserve Chair Jerome Powell’s testimony on the CARES Act and the GDP MoM release by Statistics Canada.
During the early European session, the USD/CHF pair fell to a two-week low, last seen trading around 0.9200.
According to preliminary data from CME Group for crude oil futures markets, traders reduced open interest positions by more than 25K contracts on Monday, reversing a five-day trend of daily gains.
Gold climbed high, around $1,795-$1796, heading into the European session, but failed to sustain the gains and remained stuck in a one-week-old trading range. The anti-risk flow due to the new covid-19 variant, proved to be a key factor in the XAU/USD attracting new buying near the $1,780 level.
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