Daily Market Reviews for 09 Dec 2021
At the beginning of the Asian session, the European currency opened at a little declining rate in comparison to the US dollar, rectifying and recovering post active growth of the previous trading day, Which gave the instrument new raise opportunities in the local market from December.
Market sentiment is bartered for the information that is widely available regarding the new Covid-19 Omicron strain. It is predicted that the effect upon the current generation of vaccines will still be slightly declining as compared to past variants of strains of the virus, which could give rise to new restrictions if the infections get spread rapidly. On the other hand, experts believe data is not yet complete, and the earlier illness and vaccination may be more than enough to ensure safety against the new strain. One way or another, the market is somewhat alarmed, but not to the extent that would lead to a new wave of risk aversion. The market is surely alarmed in any of the situations, but investors are focusing on trading earnings, people are analyzing the unemployment data collected from the US. Within a day Germany will soon publish the data on the market volatilities of trade balance as well as the number of Imports and exports in October.
The British pound is within the trading cycle showcasing multidirectional market movements against the American dollar currency within the beginning of the morning session, consolidating post the active decline the day before the previous trading, credit goes to the instrument which was again renewed for record lows. Traders reacted actively towards reports of the UK government coming up with new restrictions on traveling for 5 months after the date the last quarantine measures were taken aback. The risks of a worse epidemiological scenario within-country took the pound down to 1.3160, the level below which the British currency last traded only in December 2020.
All the activity of market participants today remained low. Investors expect new pushing factors to make a difference, but the brand new macroeconomic calendar is somewhat meager of some publications. However, Friday will showcase some amazing new releases. On the other hand, November statistics on the volatilities on consumer inflation in the US will be published and October data on the UK GDP, as well as statistics on industrial production, will be released as well. Primary forecasts of analysts suggest a slowdown in the British economy from 0.6% to 0.5% every month.
The New Zealand dollar has showcased little growth against the US dollar during the Asian session, rebuilding upon the rectifying momentum that took place at the beginning of the week. NZD/USD managed to recover from lows recorded since early November 2020, assisted by showing better market sentiment and other technical factors developments with the NZD still sold in the high volumes within a short term.
All the macroeconomic statistics from New Zealand released today show it to be negative, which clearly hampers the development ahead of the future uptrend in the closer timeframe. Sales volumes in the industrial sector in New Zealand for Q3 2021 fell sharply by 6.4% after declining by 0.4% in the previous quarter. In turn, data from China managed to showcase support for the sentiment in the market. The Consumer Price Index rose 0.4% in November after rising 0.7% in October. The forecasts assumed a decline to 0.3%. In annual terms, inflation accelerated from 1.5% to 2.3%, which turned out to be worse than the market that was projected to go down by 0.2%.
The US dollar is showing development in different directions when pairing with the Japanese yen during trading within Asia, consolidating very close to the psychological resistance at around 114.00. USD/JPY is trading at 113.60, waiting for the emergence of new drivers in the market, which may also be the data from the US on the dynamics of jobless claims.
All Pressure on JPY is due to weak macroeconomic statistics from Japan published the previous day. Japan’s GDP in Q3 2021 declined by 0.9% after decreasing by 0.8% in the last trading quarter. The forecasts assumed an average rise of the Japanese economy by 0.4%. On an annual basis, the rate fell 3.6% after declining 3% in the previous quarter. On the other hand, Eco Watchers Survey on present Situation in November was revised with an increase from 55.5 to 56.3 points, which turned out to be significantly much better than the forecasts predicted at 49 points.
Gold prices have shown little growth within the Asian session, trying to develop the weak corrective trend that got formed on Tuesday. The growth of the instrument is closely confined as investors are expecting a tightening of monetary policy from the US Federal Reserve.
Previously, representatives of the American regulator expressed concerns about high and rising inflation rates in the country, promising to take some extra measures if the need arises. All the Market participants expect that the US Fed may show the pace of decreasing of the quantitative easing program already within the next meeting, and ultimately move rapidly to raise the interest rate. In the countryside, the demand for gold is supported by constantly rising fears about the possible spread of a new Omicron strain of coronavirus, which can be resistant to the current generation of vaccines.