Market concerns reduce as reports conclude Omicron less severe
Yesterday, three separate reports suggested that the Omicron variant may result in less severe illness than previous variants of the virus, which led to a more positive tone to investor sentiment across financial markets including Oil prices, which continued to edge higher following some heavy losses earlier in the week.
On the currency front, the dollar has been under some noteworthy pressure this week, with thin trading volumes in the run-up to Christmas being partly to blame. The currency has fallen by 0.6% against the euro, and by 0.8% against sterling. Sterling however, has been holding a firmer tone against the euro, gaining some of the ground lost earlier in the week. As trading got underway this morning, EUR/USD is pushing towards the halfway mark of $1.13-1.14 range, GBP/USD is trading at the midpoint of the $1.33- 1.34 range and EUR/GBP is trading just below the 85p mark.
As we look ahead to today, the only releases of interest are from the US, with Core-PCE inflation (forecast to rise to 4.5% from 4.1%) and general consumption and income data projected to show another month of solid growth in personal income and spending for November.
Finally, with our last Market Commentary of 2021, we would like to wish all of our readers a Merry Christmas, and a prosperous 2022. Our next commentary will be on Tuesday 4th of January 2022.