Dollar, Yen Down

Omicron Variant Keeping Markets on Edge

Moves were softened with a surge of cases of the Omicron variant of the new COVID-19. It has forced some countries to reimpose restrictions, discouraging traders from moving too aggressively.

The dollar index =USD, which gauges the currency against six major counterparts, fell to as low as 96.450, down marginally on the day after yielding 0.12% overnight. The euro EUR= crept higher to $1.1282. The haven yen lost some ground to 113.7 per dollar. Both were moving in keeping with Tuesday’s progress in Asian equities, U.S. share futures, and oil. MKTS/GLOB

But in terms of the larger picture, the dollar is still healthy, having closed 16-month highs at 96.914 last week, behind the U.S. Federal Reserve opened the door to as many as three interest rate increases in 2022.

Dollar Pulling Back

Monday’s beatings arrived after U.S. Senator Joe Manchin, a moderate Democrat who is key to President Joe Biden’s expectancies of passing a $1.75 trillion domestic investment bill – known as Build Back Better, stated he would not back the Sunday package.

According to Kyle Rodda, an analyst at I.G. markets, the dollar drew back on the breakdown of Build Back Better. Less stimulus, more weak growth, and rates falling at the short-end were enough to drive the dollar slightly lower.

On Monday, two-year U.S. Treasury yields US2YT=RR handled 0.5870%, their lowest since Dec. 3, pushing the yield curve to steepen.

Two-year notes last lost 0.6317%, and yields on benchmark 10-year Treasuries US10YT=RR were stable at 1.4242%.

The pound GBP=D3 was soft at $1.3213 behind British Prime Minister Boris Johnson stated on Monday he would tighten COVID-19 curbs to restrict the spread of the Omicron variant if required.

Sending
User Review
0 (0 votes)

RELATED POSTS

Leave a Reply

tmn-img-28-1

Share this on

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Rec­om­mended for You

Subscribe to Our Newsletters

Have The Best Of Trade Market News Delivered Directly To Your
Mailbox. Subscribe To Receive The Latest Market News.