Market Wrap
UK Prime Minister Boris Johnson has just announced that we should all work from home, if possible, as of Monday and that the government will be moving to COVID-19 Plan B. If there is evidence that the booster shots can curtail the effects of the Omicron variant, then they will reassess what to do next, but he would encourage everyone eligible to get a booster.
The Bank of Canada (BOC) kept their rates on hold as expected. In their statement, they said that they remain committed to holding the policy interest rate at the lower bound until economic slack is absorbed. In their view, this would get the economy back to sustainable growth and make their stable 2% inflation target achievable. The BOC view the current levels of inflation as persisting into 2022 but expect to see inflation levels ease from H2 2022.
Omicron has thrown a spanner in the works for all the central banks as governments are having to re-impose travel restrictions and deny economic activity beyond the home. Not only does that restrict the movement of goods and create bottlenecks as we have seen over the last 2 years but also a lack of demand for oil. For Canada, this will have a negative impact on their economy due to the relationship between GDP and oil price.
The ActivTrader sentiment indicator shows that 73% of traders are bullish the USDCAD as it slips this week to around from 1.2650 from the recent 1.2850 highs.
See real-time quotes provided by our partner.
The Loonie is trading within a large rising channel which one would expect to break to the downside eventually. A lot will depend on how well oil prices hold up as government’s start to impose more draconian measures to try and stop the spread of Omicron.
President Biden tweeted that the new data from Pfizer was encouraging and called on anyone who is eligible to get a booster today.
See real-time quotes provided by our partner.
The demand for oil in North America hasn’t yet completely disappeared according to the weekly US EIA report, though gasoline stocks are higher than expected but below last week’s figure. Weekly distillates which will include Diesel show a build, so maybe haulage is showing a lack of demand. Crude stocks are down -0.240 million barrels and missed expectations of a draw of -1.705 million barrels. Brent oil is slowly moving higher into a level that had previously acted as support and resistance in the past.
The forex heatmap is completely mixed at the London close though the euro and Aussie have retained their relative strength all day. The US dollar hasn’t found any bids after the US JOLTS jobs openings increased to 11.033milion to create a record high number of openings. Over the 12 months ending in October 2021, hires totalled 73.8 million and separations totalled 68.1 million, yielding a net employment gain of 5.7 million. These totals include workers who may have been hired and separated more than once during the year.
See real-time quotes provided by our partner.
The DXY is finally moving but is still within the trading range set on the last day of November. A breach of $95.50 would open up the probabilities of a revisit to the $94.50 to $93.50 zone.
See real-time quotes provided by our partner.
The Aussie has gotten itself back above some significant levels of prior support that so far failed to act as significant resistance. This move has been accelerated by the downfall of the greenback today and with little market structure above to stop it, the AUDUSD could be testing the 0.7300 level soon.
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 |