Market Brief
The UK Health Security Agency will release its early data on the severity of the Omicron variant of COVID-19 before Christmas. In their findings, it is believed that most Britons appear to suffer from a milder disease caused by the Omicron coronavirus variant than the Delta strain. If this is true it will give the UK government a more bullish tone going into the new year and with a milder disease the severity of the lockdowns will be reduced in scale and time. The UK government has already reduced the self-isolation period from 10 days down to 7 days.
Data released today from the Office for National Statistics (ONS) says that the British economy grew 1.1% quarter on quarter in the three months to September of 2021, which is below initial expectations of a 1.3% increase, and down from a downwardly revised 5.4% growth in the three months prior. A growth of 1.4% was noted in the services sector, whereas 0.1% and 1% fell in the production and construction sectors, respectively. Manufacturing declined by 0.7%. Yesterday the UK Treasury announced a spending package to help the service sector that is being hit by the fears around Omicron.
See real-time quotes provided by our partner.
The GBPUSD is currently testing the intraday resistance level that printed before the Bank of England rate hike announcement, and as it is rising in a neat channel, there is a high probability that cable tests lower today. The intraday moving averages are coiling around each other and with economic news matching current sentiment around the UK, the pound is going to find rallying hard unless we get some really good headline news.
See real-time quotes provided by our partner.
Adding to the bearish tone around the GBPUSD is the more positive price action in the US dollar index. Currently price in the DXY is trapped between $97 to the upside and is supported by $95.50, but overall the bull flag is expected to break higher.
Across the pond in NYC, Mayor Bill de Blasio announced that the city will give $100 to each of the city’s residents who receive a booster dose of the COVID-19 vaccine. “This will be by far the biggest booster incentive program in the United States of America,” he told reporters. “This is the moment, come out in real big numbers, get those booster shots and help make your family safer and help make this whole city safer.” Not sure we’d see the same gesture from London Mayor Khan.
See real-time quotes provided by our partner.
Yesterday, private data showed that crude inventories in the United States decreased last week. According to the American Petroleum Institute (API), its weekly report stated that US crude stockpiles dropped by 3.7 million barrels. Pointing to an increase in demand and a more hawkish economy. The report is also said to have shown a jump of 3.7 million barrels in gasoline inventories, which is a signal that drivers are rejecting the higher prices at the pump or that they need their cars less as we go into the holiday season. We now await official figures from the Energy Information Administration (EIA) scheduled for later today.
Brent tests the recent swing lows and the daily 200 EMA and found buyers but the 20 and 50-period EMAs are acting as decent dynamic resistance. A less worrisome Omicron variant would see demand come back for oil.
At the start of the London session the forex heatmap offers little directional bias though the positive oil inventory data is lifting the CAD. The weakest currency relative to the others is the Australian dollar so commodity pairs are very mixed.
A comprehensive website for traders, both experienced and new! Checkout our content and learn how to invest and speculate in the markets using margin traded products. Our team of educators has extensive experience and is here to help. Enjoy!
© 2020 YouTrading UK - Leaders in Trader Training.
Cookie | Duration | Description |
---|---|---|
__cfduid | 1 month | The cookie is used by cdn services like CloudFare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. It does not correspond to any user ID in the web application and does not store any personally identifiable information. |
_wpfuuid | 11 years | This cookie is used by the WPForms WordPress plugin. The cookie is used to allows the paid version of the plugin to connect entries by the same user and is used for some additional features like the Form Abandonment addon. |
cf_use_ob | This cookie is set by the provider Cloudflare content delivery network. This cookie is used for determining whether it should continue serving "Always Online" until the cookie expires. | |
cookielawinfo-checbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-advertisement | 1 year | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
YSC | session | This cookies is set by Youtube and is used to track the views of embedded videos. |
Cookie | Duration | Description |
---|---|---|
_ga | 2 years | This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors. |
_gid | 1 day | This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form. |
Cookie | Duration | Description |
---|---|---|
_fbp | 3 months | This cookie is set by Facebook to deliver advertisement when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website. |
fr | 3 months | The cookie is set by Facebook to show relevant advertisments to the users and measure and improve the advertisements. The cookie also tracks the behavior of the user across the web on sites that have Facebook pixel or Facebook social plugin. |
IDE | 1 year 24 days | Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile. |
test_cookie | 15 minutes | This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies. |
VISITOR_INFO1_LIVE | 5 months 27 days | This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website. |
Cookie | Duration | Description |
---|---|---|
_gat_UA-42160853-2 | 1 minute | No description |
cf_ob_info | No description | |
CONSENT | 16 years 8 months 3 days 6 hours 2 minutes | No description |