Latest News

Dollar Down, Omicron Fears Counter Brighter Economic Outlook

© Reuters.

By Gina Lee

Investing.com – The dollar was down on Thursday morning in Asia as optimism about the global economic outlook whetted investors’ risk appetite. However, the continuous, rapid spread of the omicron COVID-19 variant remains a concern.

The US Dollar Index that tracks the greenback against a basket of other currencies inched down 0.03% to 96.028 by 11:09 PM ET (4:09 AM GMT).

The USD/JPY pair inched up 0.02% to 114.13.

The AUD/USD pair inched down 0.1% to 0.7206 and the NZD/USD pair inched up 0.03% to 0.6808.

The USD/CNY pair inched up 0.02% to 6.3707 while the GBP/USD pair stablized at 1.3348.

After being rattled by omicron’s spread and ensuing government restrictions earlier in the week, risk sentiment has improved. A South African study showed that patients with the omicron variant have reduced risks of hospitalization and severe disease compared with the delta variant.

Also contributing to improved sentiment, Pfizer Inc.’s (NYSE:PFE) COVID-19 antiviral therapy, Paxlovid, received emergency use authorization from the U.S. Food and Drug Administration on Wednesday.

On the data front, Wednesday’s data from the U.S. showed that the GDP grew 2.3% quarter-on-quarter in the third quarter of 2021. Existing home sales were at 6.46 million for November and the Conference Board Consumer Confidence index was at 115.8 for December.

More data is due later in the day, including initial jobless claims, new home sales, durable goods orders, and the PCE price index. It also includes personal income and spending, as well as the University of Michigan consumer sentiment and Michigan Consumer Expectations indexes.

Central banks are also tightening monetary policy, with the U.S. Federal Reserve adopting a hawkish tone at its latest policy meeting.

“Ongoing data strength should help bolster Fed pricing, particularly amid reports that omicron appears to be leading to fewer hospitalizations,” TD Securities analysts said in a report.

The Bank of England also raised its interest rate to 0.25% in its latest policy decision last week. However, the surprise move has “offered only some time-limited support to the pound, but the fast spread of the omicron in the U.K. may keep some pressure on the pound around Christmas, in particular as the government may opt to impose some new restrictions,” ING said in a recent note.

Dollar Down, Omicron Fears Counter Brighter Economic Outlook

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

You may also like

Leave a reply

Your email address will not be published.

More in Latest News