EUR/USD is trading pressured below 1.1300, weighed down by the prospects of the EU becoming the epicentre of the new covid variant, Omicron. The US dollar catches a risk-off bid amid tepid yields, as the Fed begins its two-day monetary policy meeting. Eurozone/ US data and Omicron updates eyed.
GBP/USD continues to trade in a relatively tight channel around 1.3200 in the early European session. The data from the UK showed that the ILO Unemployment Rate declined to 4.2% in October as expected and the Claimant Count Change arrived at -49.8K for November.
USD/JPY struggled to gain any meaningful traction and remained confined in a range on Tuesday. Hawkish Fed expectations continued acting as a tailwind for the USD and extended some support. COVID-19 jitters underpinned the safe-haven JPY and capped gains amid declining US bond yields.
AUD/USD remains on the back foot for the second consecutive day, refreshes weekly low at the latest. Australia’s most populous state NSW report 50% jump in virus cases, UK reports the first Omicron-linked death. Australia’s NAB sentiment numbers came in mixed for November.
NZD/USD is under pressure and trades down 0.15% falling from 0.6759 to a low of 0.6739 made so far on the day. High-beta currencies such as the kiwi are out of favour while risk has been shunned due to the new covid variant fears.
USD/CAD seesaws near weekly top beyond 1.2800 as oil rebound battles risk-aversion.
USD/CHF remains mildly bid around 0.9230, holding Monday’s recovery moves during early Tuesday inside a one-week-old symmetrical triangle formation.
WTI crude oil defends the $71.00 threshold during a quiet Asian session on Tuesday. Even so, the energy bears remain hopeful as the quote broke an upward sloping trend line from December 03 the previous day.
Gold price extended the previous rebound from multi-day lows and tested the area around $1,792 on Monday, kicking off the week on a positive note. The uptick in gold price was underpinned by the risk-off market mood.
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