What you need to know on Wednesday, December 8:
Markets were more active on Tuesday, with optimism leading the way. The hope that the coronavirus-Omicron variant will be milder and not disrupt the economic recovery sent global stocks higher. However, it is too early to say how things will turn out with the new COVID-19 strain.
The EUR was the weakest rival to the USD, while the AUD and CAD were the strongest. EUR / USD fell to 1.1227, its lowest level in December, following the release of unimpressive data from the EU. GBP / USD approached its yearly low, rebounding modestly before the close to settle at around 1.13230.
EU data was unimpressive as the EU’s third quarter 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 compared to the 5 expected by the markets.
AUD / USD is trading around 0.7110, supported by rally in stocks and an upbeat RBA. USD / CAD is down to 1.2650 as oil prices continued to rise, with the WTI nearing $ 72.00 a barrel.
The dollar advanced modestly against the CHF and JPY, a safe haven, with the pairs confined to tight intraday ranges.
Gold rose but remained within familiar levels of around $ 1,785 a troy ounce.
US Treasury yields rose on market optimism, and the 10-year Treasury yield touched the 1.48% level at the end of the day.
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