Oil pops 5% after rout

“Opportunity is missed by most people because it is dressed in overalls and looks like work.” – Thomas Edisonö

 

 

 

HEADLINES

 

 

• Dollar up against safe havens as risk sentiment improves on Omicron news
• AUD/USD: Market pricing too much tightening in 2022 so aussie still looks vulnerable – MUFG
• Oil rebounds by almost 5% on Omicron hopes, Iran talks
• Gold futures end lower, give back some of Friday's gains
• Wall Street regains some ground with help from easing virus fears
• Tesla Down 20% From Record High Following Report of SEC Probe

 

 

 

FOREX

 

 

Dollar up against safe havens as risk sentiment improves on Omicron news

 

The dollar edged higher against safe-haven currencies such as the yen and Swiss franc after reassuring news on the Omicron COVID-19 variant, while units like the Australian dollar that had weakened in recent weeks on growth worries also advanced.

U.S. Treasury yields rose and stocks gained after news that initial observations suggested Omicron patients had only mild symptoms, reversing some of Friday's heavy selloff.

 

AUD/USD: Market pricing too much tightening in 2022 so aussie still looks vulnerable – MUFG

 

“The market remains priced for around three rate hikes in 2022 and we do not expect the RBA outcome next week to be consistent with that. As well as mixed labour market conditions and limited evidence of wage growth picking up, Australia’s terms of trade has taken a negative hit with iron ore and coal prices both taking a tumble. With the RBA set to persist with QE until the February review and while the RBA could end QE at that stage, the contrast with the Fed over the coming months will keep downward pressure on AUD/USD.”

 

 

COMMODITIES

 

 

Oil rebounds by almost 5% on Omicron hopes, Iran talks

 

Oil prices climbed by nearly 5% on Monday on hopes the Omicron coronavirus variant would have a less damaging economic impact if its symptoms proved mostly mild and as some OPEC member countries signaled confidence in the market.

 

Gold futures end lower, give back some of Friday's gains

 

Gold futures settled with a loss on Monday, with prices giving back a portion of the more than 1% gain seen on Friday. Gold's Friday move higher was "tempered" as "risk aversion cooled off and the U.S. dollar caught a bid," said Stephen Flood, director of bullion services at GoldCore. "All eyes are on Friday's U.S. CPI release to gauge how inflation is trending, expect fireworks if a deterioration occurs," he said. "Investors are also keenly eying the Fed's meeting on December 14 & 15th to see how interest rate policy will adjust to inflation." February gold fell $4.40, or nearly 0.3%, to settle at $1,779.50 an ounce.

 

 

 

STOCKS

 

 

Wall Street regains some ground with help from easing virus fears

 

Wall Street's major averages closed higher on Monday with economically sensitive sectors and travel-related stocks advancing solidly as investors were encouraged by some optimistic comments from a top U.S. official on the latest COVID-19 variant.

 

Tesla Down 20% From Record High Following Report of SEC Probe

 

Tesla Inc.’s shares reversed most of their earlier losses to close with a slight drop, shrugging off a report that regulators opened an investigation into the electric-vehicle company. The stock fell as much as 6.4% to $950.50 in morning trading in New York. That was a 23% decline from the record closing high of $1,229.91 touched barely a month ago on Nov. 4. A stock is said to enter a bear market when it falls 20% on a closing basis.

 

 

CHART

 

 

US dollar / Canadian dollar – 4-Hour Candlesticks

Source: GKFX Prime Metatrader 4

USD/CAD has broken below a rising trendline after forming a bearish RSI divergence. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

 

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/markets/europe/wall-street-regains-some-ground-with-help-easing-virus-fears-2021-12-06/
https://www.reuters.com/markets/commodities/oil-gains-more-than-1bbl-after-saudi-price-hike-2021-12-06/
https://www.fxstreet.com/news/aud-usd-market-pricing-too-much-tightening-in-2022-so-aussie-still-looks-vulnerable-mufg-202112061602
https://finance.yahoo.com/news/forex-dollar-against-safe-havens-200518741.html
https://finance.yahoo.com/news/tesla-track-enter-bear-market-154538370.html