Week Ahead: Variant volatility to continue, US CPI in focus
News Centre | Vantage FX
by jamie
2y ago
The markets look likely to remain volatile with two competing forces battling each other. The new strain of coronavirus and any new scientific news is threatening to curtail economic activity and derail the growth story. Risks are skewed to the downside, with knowledge speculative and highly uncertain at present. The new variant threat may complicate the Fed’s readiness to accelerate US policy tightening. Last week’s jolt of volatility underscores how investors are bracing themselves for Chair Powell’s more hawkish turn and faster pullback from its massive stimulus programme. The most impor ..read more
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Dollar moving on up ahead of NFP
News Centre | Vantage FX
by jamie
2y ago
Overnight Headlines *Senate approves spending bill averting government shutdown *Oil stabilises following the OPEC+ surprise decision to continue their 400k output increase *Dollar edges higher before US jobs data as Omicron fears ease   *US stocks rebound as risk appetite improves USD closed marginally higher Thursday after hitting lows of 95.82 earlier in the session. USD/JPY gained 0.3% to 113.16 after two days of losses. EUR/USD looks to be rolling over after printing a high of 1.1382 on Tuesday. AUD and NZD both eased again and are nearing recent lows at 0.7062 and 0.6772. US equi ..read more
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Oil markets looking to OPEC+ meeting for support
News Centre | Vantage FX
by jamie
2y ago
Overnight Headlines *Asian markets mixed as Omicron worries leave investors on edge *US health officials find first US case of new variant *USD erased losses after news of arrival of Omicron in the US *US stocks reversed solid gains and closed sharply lower USD benefitted from the cooler risk mood as investors grew more cautious on the Omicron news. The DXY initially fell to a low of 95.68, before closing marginally higher at 96.00. G10 currencies were generally lower on concerns of the potential economic fallout and risk aversion.  Most majors had “inside days” meaning the range held ..read more
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Fed’s Powell significant hawkish turn
News Centre | Vantage FX
by jamie
2y ago
Overnight Headlines *Powell places faster bond-buying taper on Fed’s December meeting list *Oil rises ahead of two-day OPEC+ meeting under Omicron cloud *USD was mixed after Powell’s pivot on inflation and rising yields *US stocks tumbled on Powell and Omicron worries USD had a volatile day softening with the new variant fears, but then gaining as the Fed Chair Powell turned hawkish. Defensive currencies outperformed and risk-sensitive currencies were the laggards. EUR rose from below 1.13 to 1.1383 before falling back sharply on Powell’s comments. The single currency is now back to the clo ..read more
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Fresh risk-off wave hits markets
News Centre | Vantage FX
by jamie
2y ago
Overnight Headlines *Risk sentiment turn gloomy as Moderna Chief predicts existing vaccines will struggle *President Biden warns against Omicron panic, pledges no new lockdowns *USD is mixed as safe havens (JPY, CHF) go bid *Oil falls over 2%, below 200-day SMA towards $71 USD recovered from two days of losses yesterday as risk sentiment picked up. But this morning, it has done an about-turn on new fears about the Omicron virus being more resistant against current vaccines. The euro rebound is gathering steam with Friday’s top at 1.1332 in sight. USD/JPY is threatening recent lows again belo ..read more
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Week Ahead: Covid fears resurface as a major threat to markets
News Centre | Vantage FX
by jamie
2y ago
New Covid-19 variant may overshadow NFP Even before Friday’s wild moves due to the discovery of the Omicron variant, traders had been on watch as Covid cases began to soar in Europe and rise sharply in the mid-west of America. With little information to go on into the new week, markets may struggle to find a bid amid a few brave bargain hunters who see opportunities after holiday-thinned price action. It seems reasonable that a cloud will hang over the festive season until we get answers to how transmissible the new variant is and whether existing vaccines remain effective. That said, the u ..read more
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Yen bid as new Covid-19 variant hits risk mood
News Centre | Vantage FX
by jamie
2y ago
Overnight Headlines *USD was mixed against its peers in thin holiday trade *US stock futures are firmly in the red on the new Covid-19 variant *Gold rebounds from SMA support above $1800 *Oil drops over 2% on fears over reopening demand USD remained near recent highs. Safe havens were bid as the new South African variant shook risk sentiment. JPY and CHF have taken centre stage with commod$s suffering. AUD is heading for the year-to-date August low at 0.7105. NZD is on its sixth straight day of declines, closing in on the 0.6805 August low. GBP/USD posted new lows for the year close to 1.33 ..read more
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Soaring dollar hits new highs on Thanksgiving
News Centre | Vantage FX
by jamie
2y ago
Overnight Headlines *USD boosted by solid data, new 17-month high at 96.93 *US stocks closed mixed as bond yields pull back *Gold stabilises around 50,100 and 200-day SMA support *FOMC Minutes flag faster taper risk *Thanksgiving holiday means US stock and bond markets closed USD continued to move higher, trading to the best level since last July. EUR fell to a new low at 1.1186. USD/JPY rose from 114.83 to 115.52, a five-year high. The less hawkish than expected RBNZ caused NZD to underperform. The kiwi fell to near-term September support at 0.6859. US equities closed a mixed bag again. T ..read more
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EUR/GBP clinging on to 0.84 ahead of PMI data
News Centre | Vantage FX
by jamie
2y ago
Overnight Headlines *USD hit fresh highs on the renomination of Jay Powell to the Fed Chair *US stocks sold off in a reversal of the rotation from Friday *The US is poised to release oil from reserves with other nations *Gold dropped nearly $50 as Powell’s renomination boosted USD and yields USD rose to its highest levels since last July. The DXY made a new cycle high at 96.60 this morning. Powell’s renomination leaves room for markets to flirt with the idea of a faster taper. USD/JPY broke out of its recent range to a four-and-a-half-year top above 115. EUR saw a post-pandemic low at 1.1226 ..read more
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EUR hurt by new lockdowns
News Centre | Vantage FX
by jamie
2y ago
Overnight Headlines *USD remains close to 16-month high on increasing European Covid infections *US stocks mixed as tech and stay-at-home stocks benefit *Bullish Fed comments suggest a faster pace of stimulus tapering USD is close to reaching fresh cycle highs as new lockdowns loom in Europe. The recent high in DXY is 96.26. Friday’s low in EUR/USD is 1.1250, though the world’s most popular currency pair closed at 1.1290, its lowest since July. Austria has imposed its fourth national lockdown, while Germany is considering following suit. USD is near its strongest since early October versus the ..read more
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