December 30, 2021

Market Momentum Fluctuates, Omicron Variant Becomes Market Focus!

 The Euro depreciated today in the middle of the holiday season. The yen fell to a one -month low against the US dollar as investors reacted to the case of the Omicron variant which soared to the point of affecting investor appetite.

Risk -sensitive currencies such as the Australian dollar traded higher, and the stock market also jumped. The opposite was true for the Euro, which depreciated 0.1% to $ 1.1298 before rebounding. The US dollar index initially strengthened then continued to decline by 0.31% to the trading level of 95.890.

With many investors as well as among retail and institutional investors taking leave, it makes it difficult for analysts to read the direction of the market. The main driver this week was more likely to be the market reaction to the surge of Omicron variant cases.

According to analysts, the market has confidence that the Omciron variant will not affect economic momentum. Investor sentiment has been boosted in recent days by signs of the Omicron variant with a surge in cases recording record highs in many countries and at the same time not leading to widespread new restrictions.

Kyle Rodda, an analyst at IG Markets, said in the long run he was optimistic about the U.S. dollar due to rate hikes and the possibility of a clear reduction in the imposition of sanctions.

Eurozone government bond yields rose as investors focused on reducing their bond purchases by the central bank in 2022 and risk appetite recovered.

The movement towards the end of the year is not much volatility in the market. For now the market tends not to be in a hurry in making investments.