This is what you need to know to trade today Monday, November 29:
The intense flight towards him safe haven Friday triggered a sharp drop in US Treasury yields and caused global stock indices to suffer heavy losses. The US dollar weakened against safe-haven currencies such as CHF and JPY, but outperformed currencies of higher perceived risk. Despite the news surrounding the new variant of coronavirus Omicron, market sentiment appears to have improved modestly early Monday. Investors await the German inflation report and euro zone business sentiment data, but risk perception will remain the main driver of the market at the start of the week.
Reflecting the risk aversion sentiment in the market, the index S&P 500 It lost more than 2% on Friday, the yield on 10-year US Treasuries fell 9.4% and the US dollar index fell 0.75%. US stock index futures are up 0.4% to 1% at the start of the European session on Monday. Markets are trying to figure out whether the Fed will be forced to take a cautious stance on tightening monetary policies in the face of a possible economic slowdown.
Although the variante Omicron As yet undetected in the United States, Dr. Anthony Fauci, the nation’s top infectious disease physician and the president’s top medical adviser, said Sunday that it was inevitable that the variant would show up in the United States.
Meanwhile, vaccine producers are testing the efficacy of current vaccines against the new variant, but are not expected to announce any results for the next two weeks. Pfizer and Moderna said it would take about 100 days to adjust the vaccine if necessary.
The EUR/USD It climbed above 1.1300 but lost its bullish momentum at the start of the new week. The pair is currently trading in negative territory around 1.1280.
The pair USD/JPY it lost more than 200 pips on Friday and opened with a small bullish gap on Monday. The pair remains near 113.00.
The GBP/USD struggled to gain traction before the weekend as investors reassess the prospects for a rate hike from the Bank of England. The pair remains in a consolidation phase above 1.3300 at the beginning of the week.
The AUD/USD and the NZD / USD fell sharply on Friday. Although these pairs stage a rebound on Monday, they remain sensitive to sentiment swings.
The oro It capitalized on the plunge in US Treasury yields during the American session, but wiped out a large chunk of its daily gains before ending the week at around $ 1,790. XAU / USD is rising to $ 1,800 in the early trading hours of the European session.
The worsening outlook for energy demand, amid new concerns about the new variant of the coronavirus causing lockdowns and restrictions, caused energy prices to Petroleum fall sharply. A barrel of West Texas Intermediate WTI lost more than 12% on Friday and was last seen rising 5% to $ 71.50 on Monday. The CAD, sensitive to commodity prices, had difficulty finding demand and the USD / CAD it reached the 1.2800 level for the first time since the end of September. The pair is currently retreating towards 1.2750.
Cryptocurrencies: The Bitcoin It fell below $ 54,000 on Sunday, but reversed its direction and started moving higher towards $ 60,000. The Ethereum it is trading in positive territory above $ 4,300 after testing $ 4,000 over the weekend.
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