- Major indices close higher for the third consecutive day
- US Pentagon official says China's coercive military moves around Taiwan increase risks
- Inflation data is due from China today; November CPI and PPI
- WTI crude oil futures settle at $72.36
- UK's Johnson: Omicron is growing much faster than previous variant. We will move to Plan B in England
- The US treasury sells $36 billion of 10 year notes at a high yield of 1.518%
- European indices correct lower after two days of gains
- Weekly US oil inventories -240K vs -1705K expected
- The Bank of Canada full statement from the December 2021 meeting
- JOLTs October job openings 11.033M vs estimate of 10.45M
- Bank of Canada leaves rates unchanged at 0.25%, as expected
- ForexLive European FX news wrap: Risk yo-yos on virus headlines
- The EUR is the strongest and the GBP is the weakest as NA trader enter for the day
- Risk rebounds as Pfizer reveals a third dose of their vaccine neutralises omicron variant
Just before US traders enter for the day, Pfizer said that three doses of their vaccine neutralizes the omicron variant.
That news helped to reverse modest declines in stocks. The major indices open higher. As the day progressed, the price action did see those gains reversed. The major indices all traded in the red with the NASDAQ index trading down as much is at -0.43%, the S&P trading down -0.39% and the Dow down-0.33%. By the close, however, all three indices had clawed their way back into positive territory with the Nasdaq leading the way with a gain of 0.64%.
All three indices have now closed positive for the 3rd consecutive day. The S&P is within 3-4 points of a new all time record close, while the Nasdaq index is within about 1.6% it its all time high close. European stocks closed lower on the day after two days of solid gains.
Although the Pfizer news was positive, it still did not stop UK PM Johnson for enacting "Plan B" on the risk of runaway omicron cases.
- From Friday we will further extend facemask requirement to most public venues
- We will make NHS Covid past mandatory to nightclubs, venues and places with large crowds
- We will give businesses a week notice on NHS Covid past requirements
The news in the UK sent the GBP lower making that currency the weakest of the major currencies. The AUD and EUR were meanwhile the strongest of the major currencies today.
For the EURUSD it moved above its near converged 100/200 hour MAs near 1.1295 and that was enough to turn any sellers to buyers. The price extended to a high of 1.1354 before rotating modestly lower into the close (at 1.13437). The swing high from last Tuesday at 1.13589 is the next upside target followed by the high from Nov 30 at 1.13822.
The GBPUSD meanwhile saw it's price move to the lowest level since December 11, 2020 and in the process test the 38.2% of the move up from the 2020 March low (at 1.3161 - the low reached 1.3158). Although the price reached a new low, the selling could not be maintained and the price rotated back higher. The pair is trading right around 1.3200 going into the close.
The AUDUSD moved above its 200 hour MA for the first time since November 2nd going into the close yesterday, and today continued that move higher (the 200 hour MA is at 0.71029). The technical break helped to push the currency to the strongest of the major currencies today. The buying was able to take the pair above the swing highs from last week at 0.71723 (the pair is closing near that level). More upside momentum could see the pair move toward the 38.2% of the move down from the October 28 high at 0.7207. Move above that, and the upside probing can continue.
The NZDUSD is more modestly higher today, but it was able to get above it's 200 hour MA at 0.6796. That is the first break above that MA since November 9. IF the break is for "real" staying above that MA will be eyed in the new day. There is room to roam, if the technicals can cooperate.
IN other markets as the day comes to a close shows:
- Spot gold is trading down -$1.10 or -0.07% at $1782
- Spot silver is down -0.06 at $22.41
- Crude oil settled at $72.36 up $0.31 and is trading at $72.64 in after hours trading
- Bitcoin is trading at $50,668.