Daily Market Update

U.S. Dollar Down as Uncertainty Grows

November 30, 2021

The U.S. Dollar weakened significantly as the globe copes with the prospect of new challenges from the Omicron variant that threatens to be resistant to current vaccines.

Overview

The CEO of manufacturer Moderna warned that current immunization may not be enough and that it could take pharmaceutical companies months until understanding and develop new ways to combat the strain. We are seeing equity markets rising based on the belief that this will mean the stimulus programs and measures established by central banks, such as the Fed, will remain untouched rather than reduced by much rapidly.In comments yesterday, Fed chairman Jerome Powell indeed showed concern that the uncertainty poses downside risks to the economy. We shall see how markets continue to digest these developments and if it continues to translate into a major correction for several currency pairs.

 

What to Watch Today…

  • No major economic events scheduled for today

View Economic Calendar

 

WOW, IT’S A ‘FOUR-PEAT’ | Top MXN Forecaster for Last 4 Quarters

Bloomberg ranks Monex for MXN, G10 Currencies, and NZD!  Learn More

Top Bloomberg Currency Forecaster

 

EUR

The Euro rose to its best level in two weeks as the new situation developing hurt the prospects of the Federal Reserve moving quickly towards tightening its monetary policy. More importantly, inflationary growth in the Euro-zone surprised with Consumer Price Index figures jumping to 4.9% for November, above the expected 4.5% and representing a record since the introduction of the Euro. We will monitor if this spurs European Central Bank members to address anything on their end, but likely the shared currency will remain highly volatile.

 

GBP

With the global worries going on, there is not much in terms of economic data impacting the U.K. Nevertheless, the current decline in popularity for Prime Minister Boris Johnson means his opposition is building up momentum to force a challenge within Parliament. Recent gaffes and perception of a slacking administration are also creating friction among Tories who wonder if they will lose a majority as polls show growing support for Labour and their ideas.

 

Ready to spin the currency market moves in your favor?

 

Discover HOW WE Can HELP You                SEND or RECEIVE PAYMENTS

 

Let’s Talk
Ready to save money, save time, and reduce risk?

It’s quick and easy to get started. Fill out the form below and a Monex USA market expert will connect with you shortly. Our team will work closely with you to develop a personalized strategy for your global payment & currency needs.

Contact us