This is what you need to know to trade today Thursday, December 9:
The market mood remains tepid amid mixed headlines about the Omicron variant of the covid globally. Renewed geopolitical tensions between the United States and Iran amid looming US-China troubles also dampen risk sentiment.
In front of Omicron, a Japanese study revealed that the new variant of COVID-19 is 4.2 times more transmissible in its early stage than Delta. Meanwhile, the United Kingdom imposed new restrictions to curb infections after a solid increase in cases in recent days. Prime Minister Boris Johnson urged working from home and having to show proof of vaccination under the new guideline for dealing with the virus, known as Plan B.
On the other hand, Pfizer Inc. and BioNTech SE said that initial laboratory studies show that a third dose of their covid vaccine may be necessary to neutralize the Omicron variant.
Investors are also weighing new concerns among United States and Iran after Reuters reported, citing a US official that “US and Israeli defense chiefs are expected to discuss possible worst-case military exercises on Thursday to destroy Iran’s nuclear facilities should diplomacy fail and if the leaders of their nations request it. “
On the Sino-US side, the US House of Representatives passed a bill to punish China for the oppression of Uyghur Muslims in the western region of Xinjiang, in the far western part of the country.
Asian stocks have been mixed, rescued by the rally in Chinese stocks. S&P 500 futures are down 0.15% on the day, justifying the cautious mood.
The safe-haven US dollar attempts a rebound as Treasury yields cling to the recent rally ahead of critical inflation data on Friday.
Recovery in EUR/USD lost momentum just below 1.1350 as the pair is now targeting 1.1300.
The GBP/USD remains stable above 1.3200, consolidating the impressive bounce from a new yearly low of 1.3167. Omicron’s concerns and Brexit risks will continue to undermine the British pound, especially as the latest covid restrictions push back expectations for a rate hike from the BoE in early 2022.
AUD/USD is approaching 0.7200 after finding new offers near the 0.7150 zone. The USD/JPY it remains lower around 113.60 amid the pullback in yields.
USD / CAD it is testing 1.2750 amid a rally in WTI prices. US oil is on the rise after the headlines between the US and Iran. The Bank of Canada (BOC) kept the interest rate unchanged at 0.25%, but warned of high inflation, briefly pushing the USD / CAD higher, where it is now consolidating.
The oro it is trading flat below the critical hurdle of $ 1,792, pending weekly US jobless claims for new incentives.
Bitcoin it’s struggling around $ 50,000, unable to find acceptance above this latest level amid a dull mood across the crypto board.