On Friday, December 10, here’s everything you need to know:
Risk anxiety continues into Friday’s European session, as traders follow the cautious tone that has prevailed in Asia and the United States overnight. Stocks are down as investors fret about the ramifications of the new Omicron version as well as the consequences of the Fed’s speedier reduction.
The Asian markets are down, while the S&P 500 futures are trading practically flat on the day in New York.
The US Dollar is falling across the board ahead of the release of critical US inflation data, which is expected to prompt the Federal Reserve to accelerate its tapering beginning next week.
The rates on US Treasury bonds, on the other hand, have recovered, with the 10-year bond threatening to break over the 1.50% barrier once more.
Major Exchanges And Stocks
Meanwhile, China’s leveraged property sector issues continue to intensify, with the real estate behemoth Evergrande Group being officially designated as a defaulter in the latest development.
Likewise, the US Senate voted 59 to 34 to approve a plan to raise the nation’s debt ceiling, which will take effect next week.
Commodity currencies made a comeback in the G10 foreign exchange market, with the Australian Dollar (AUD) emerging as the strongest. The Australian Dollar is supported by the strengthening of the Chinese Yuan, which has occurred as a result of government intervention.
The USD/CAD is maintaining its ground above 1.2700, even though the US Dollar and WTI are trading on the defensive. The price of US crude oil fell around $70 per barrel on Thursday as a result of China’s housing market troubles and Omicron-led tight measures enacted in major nations.
The USD/JPY is moving at 113.50, bouncing along with Treasury yields as traders disregard a jump in wholesale price inflation in Japan, which has caused the currency to fall.
The Euro-Dollar exchange rate is stabilizing around 1.1300, making it susceptible in the face of the Fed-ECB fiscal policy difference. The Euro dropped substantially after Reuters revealed that the European Central Bank (ECB) intends to increase its quantitative easing purchases when it gathers next week.
The Pound is defending 1.3200 against the Dollar, which has been weakened by the Omicron and Brexit-related economic worries, which have dampened expectations for a rate rise by the Bank of England in December.
Commodities And Crypto
All eyes are on the monthly GDP and industrial output figures for the United Kingdom.
Gold is back in the red, with the metal aiming to test the critical $1,760 support area as the United States’ inflation figures are released.
The Consumer Price Index (CPI) in the United States is expected to rise by 6.8% year-on-year in November, up from the previously forecasted 6.2%.
As a new bid wave sweeps across the cryptocurrency market, Bitcoin is seeking to make a move towards the $50,000 barrier.