The US dollar has surged against many of its peers following Umicore’s announcement that it will shut down the gold refining plant in Belgium. This is good news for traders and investors who can now focus on how price reacts to this event and other similar occurrences going forward.
The “stock market news today” is a positive sign for the USD Forex Market. The “Omicron Concerns” are causing some instability in the market, but it has not been enough to cause any major losses.
- Treasury Yields Recover Some of Their Lost Ground
- Euro Dropping Ahead of German Inflation Data
- Stock futures are up after a sell-off on Friday.
Friday was a big down day for everyone, as traders in the FX market and others faced with the newest COVID-19 edition. This, now known as Omicron, caused havoc on the market, causing a flight to safety and a massive sell-off on Wall Street. As the new week begins, the effect of this spread is still being felt, although US Treasury Yields have begun to rise in tandem with Wall Street futures activity. This has put pressure on the currency, especially the Euro, as Germany’s important inflation report is expected.
The Rebound in Treasury Yields Indicates Optimism
The 10-Year Treasury Yield in the United States, along with almost everything else, fell sharply on Friday. The number plummeted by about 10%, as many involved in forex trading and other markets were frightened by the newest COVID-19 variation to make news. However, early on Monday, there is a resurgence of optimism.
This has pushed the 10-year yield up to 1.53 percent in early trade, limiting the Euro’s gain potential. In reality, after profiting from selective Dollar weakening on Friday, the common currency is under pressure again below 1.13. The pound has been struggling as well, trading below 1.335.
The Eurozone is focusing on inflation and policy.
Germany will provide the most crucial data of the day for investors trading the Euro. The November inflation figures will be released soon, giving forex brokers and traders plenty to think about. Higher-than-expected statistics might put further pressure on the Euro, but given the development of Omicron, this could be regarded differently.
Most members of the ECB have long considered inflation to be a temporary pressure caused by COVID. This is a viewpoint that has allowed European authorities to stay mostly supportive even when the economy seems to be returning to normal. All eyes will be on any fresh policy responses to the new version in Europe and the United States.
The Stock Market Is Expecting a Rebound
On Friday, Wall Street took a hit as well. The Dow Jones was down almost 1,000 points at its lowest point of the day before making a partial rebound to finish the day firmly but still far from positive territory. With increased trust in treasury rates, it looks that this will also spread to the stock market. Despite substantial uncertainty regarding the distribution of the new variety, US futures are already trading favorably.
European markets, which appear certain to rebound strongly on Monday, have shown this in the early hours. The main US indexes are expected to follow suit, staying close to whatever policy changes the Fed makes. A positive-looking employment report for November is also expected to be released this week, with economists estimating 581,000 new positions.
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The “dow jones future” has been bullish for the last few weeks, with the USD Forex market returning to strength amid Omicron concerns.
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