Forex Today: Optimism leads, but would it last?
|What you need to know on Wednesday, December 8:
Markets were more active on Tuesday, with optimism leading the way. Hopes that the Omicron coronavirus variant is milder and won’t interrupt the economic comeback sent global equities well into the green. Nevertheless, it’s too early to say how things will turn out with the new COVID-19 strain.
The EUR was the weakest USD rival, while the AUD and the CAD were the strongest. EUR/USD fell to 1.1227, its lowest for December, following the release of unimpressive EU data. The GBP/USD pair neared its yearly low, bouncing modestly ahead of the close to settle at around 1.13230.
EU data failed to impress, as the EU Q3 Gross Domestic Product was confirmed at 2.2% QoQ. On the other hand, the German ZEW showed that Economic Sentiment improved in Germany and the EU in December, although the assessment of the current situation plummeted to -7.4 vs the 5 anticipated by markets.
AUD/USD trades around 0.7110, underpinned by rallying equities and an optimistic RBA. USD/CAD is down to 1.2650, as oil prices kept rallying, with WTI near $72.00 a barrel.
The dollar advanced modestly against safe-haven CHF and JPY, with the pairs confined to tight intraday ranges.
Gold ticked higher but held within familiar levels at around $1,785 a troy ounce.
US Treasury yields surged on the back of the market’s optimism, with the 10-year Treasury note yielding 1.48% by the end of the day.
Top 3 Price Prediction Bitcoin, Ethereum, XRP: Crypto market dazed post flash crash
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.