Stocks reverse gains to sell-off again

“You will either step forward into growth or you will step back into safety.” - Abraham Maslow

 

 

HEADLINES

 

 

• Dollar recovers in face of Omicron; commodity currencies slide
• Canadian dollar turns lower as oil rally fizzles
• Oil Rebounds on OPEC, Only to Drop Back on 1st US Omicron Case
• Gold futures end higher amid ‘uncertainty and anxiety’ in the marketplace
• Wall Street closes lower as Omicron and inflation worry investors
• EUR/USD set to edge lower towards the 1.10 level – Nomura

 

 

FOREX

 

 

Dollar recovers in face of Omicron; commodity currencies slide

 

The U.S. dollar recovered from a loss on Wednesday after reports the Omicron coronavirus variant is spreading and oil prices turned down, hurting commodity currencies. The shifts underscored the hour-to-hour fragility of foreign exchange rates as traders weigh what the Omicron variant might do to plans that Federal Reserve Chair Jerome Powell signaled on Tuesday to move more quickly to raise U.S. interest rates.

 

Canadian dollar turns lower as oil rally fizzles

 

The Canadian dollar weakened against its U.S. counterpart on Wednesday, giving back its earlier gains as a rebound in oil petered out and investor appetite for risk remained fragile.

 

 

COMMODITIES

 

 

Oil Rebounds on OPEC, Only to Drop Back on 1st US Omicron Case

 

Oil prices recovered from 3-month lows on Wednesday in anticipation of supportive action from OPEC, before closing lower for a fifth time in six days after the United States announced its first Omicron case of Covid.

 

Gold futures end higher amid ‘uncertainty and anxiety’ in the marketplace

 

Gold futures ended higher Wednesday, marking a partial rebound from losses in the previous session, buoyed by uncertainty around the impact of the omicron variant of coronavirus, as the dollar weakened, and yields for government bonds moved lower.

 

 

STOCKS

 

 

Wall Street closes lower as Omicron and inflation worry investors

 

Wall Street closed lower on Wednesday after a morning rally faded as investors fretted about the latest coronavirus variant and the first evidence of its U.S. arrival while they also digested Federal Reserve Chair Jerome Powell's comments on surging inflation.

After having advanced as much as 1.9% by late morning, the S&P 500 had given up its gains to turn negative by late afternoon along with the Dow and Nasdaq.

 

 

ANALYSIS

 

 

EUR/USD set to edge lower towards the 1.10 level – Nomura

 

"Rate spreads suggest EUR/USD should be much lower (sub 1.10) and FX is still playing catch up.” 

“A global slowdown typically benefits USD. German new orders are in decline and with China slowing too it’s difficult to see why European growth should outperform.” 

“In addition, there is the added uncertainty over rising covid cases, a new variant and restrictions.”

 

 

CHART

 

 

Wall Street 30 – Daily Candlesticks

Source: GKFX Prime Metatrader 4

WS30 has closed under its 200-day moving average for the first time since July 2020. - 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-closes-lower-omicron-inflation-worry-investors-2021-12-01/
https://www.reuters.com/markets/currencies/dollar-recovers-face-omicron-commodity-currencies-slide-2021-12-01/
https://www.reuters.com/markets/us/canadian-dollar-turns-lower-oil-rally-fizzles-2021-12-01/
https://www.investing.com/news/commodities-news/us-oil-stockpiles-fell-by-910000-barrels-last-week-eia-2696038
https://www.msn.com/en-us/money/markets/gold-futures-end-higher-amid-uncertainty-and-anxiety-in-the-marketplace/ar-AARleiM
https://www.fxstreet.com/news/eur-usd-set-to-edge-lower-towards-the-110-level-nomura-202112011453