Omicron & Powell rattle markets

“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” - Warren Buffett

 

 

HEADLINES

 

 

• Fed Chair Powell Retires 'Transitory,' the Dollar Flies
• COVID comeback caps a November to remember in markets
• Euro set for biggest 3-day rising streak in 2021
• Oil Plunges 5% on Fear That Existing Vaccines Can’t Stop Omicron
• Gold retreats as Fed’s Powell strikes hawkish tone
• Wall St sinks as taper acceleration worries pile onto virus angst

 

 

FOREX

 

 

Fed Chair Powell Retires 'Transitory,' the Dollar Flies

 

The U.S. Dollar staged an extremely strong rally against other major currencies Tuesday after comments from Fed Chair Jerome Powell in which he said it's time to retire the word transitory and indicated the central bank could speed up the pace of cutting its monthly bond buying. 

Speaking to the Senate Banking Committee, Powell said, "At this point, the economy is very strong and inflationary pressures are higher, and it is therefore appropriate in my view to consider wrapping up the taper of our asset purchases, perhaps a few months sooner."

 

COVID comeback caps a November to remember in markets

 

The discovery of the new Omicron coronavirus variant towards the end of November has sent markets tumbling - the culmination of a volatile month for almost every asset class globally.

 

Euro set for biggest 3-day rising streak in 2021

 

The euro surged on Tuesday and is on track for its biggest three-day rising streak this year as traders cut their short positions on the single currency after Moderna's CEO said COVID-19 vaccines are unlikely to be as effective against the Omicron variant as they have been with other types.

 

 

COMMODITIES

 

 

Oil Plunges 5% on Fear That Existing Vaccines Can’t Stop Omicron

 

Oil prices took a hit for a fourth time in five days, with traders warning that the U.S. crude benchmark could even slip beneath the key $60-per-barrel support, on fears that existing vaccines in the market may not be able to stop the spread of Covid’s newly-discovered Omicron strain.

 

Gold retreats as Fed’s Powell strikes hawkish tone

 

Gold beat a hasty retreat on Tuesday as investors latched on to seemingly hawkish remarks from the U.S. Federal Reserve chair, erasing gains from an over 1% rally fueled by concerns over the Omicron coronavirus variant. Prices earlier rose as much as 1.3% earlier in the session after a warning from Moderna’s CEO that COVID-19 vaccines were likely to be less effective against the new variant.

 

 

STOCKS

 

 

Wall St sinks as taper acceleration worries pile onto virus angst

 

Wall Street's main indexes fell more than 1% on Tuesday after Federal Reserve Chair Jerome Powell signaled that the U.S. central bank would consider speeding up its withdrawal of bond purchases as inflation risks increase, piling pressure onto a market already nervous about the latest COVID-19 variant.

In a testimony before the Senate Banking Committee, Powell indicated that he no longer considers high inflation as "transitory" and that the Fed would revisit the timeline for scaling back its bond buying program at its next meeting in two weeks.

 

 

CHART

 

 

Aussie / US dollar – 4-Hour Candlesticks

Source: GKFX Prime Metatrader 4

AUD/USD formed a bullish hammer pattern at major support from the August low around 0.71, suggesting some relief to the downwards pressure that started in November - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.investing.com/news/commodities-news/oil-plunges-5-on-fear-that-existing-vaccines-cant-stop-omicron-2694857
https://www.investing.com/news/forex-news/fed-chair-powell-retires-transitory-the-dollar-flies-2694652
https://www.investing.com/news/stock-market-news/futures-slump-on-fresh-omicron-worries-after-vaccine-warning-2694165
https://www.cnbc.com/2021/11/30/gold-markets-omicron-covid-variant.html
https://www.reuters.com/markets/europe/euro-set-biggest-3-day-rising-streak-2021-2021-11-30/