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Omicron Pressure Remains on Forex Market

by Serge Shlykov

The omicron pressure remains on the forex market due to unknown factors that have led traders and investors to be more cautious about entering new positions.

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The “forex trading meaning” is a term that is used in the Forex market. The Omicron pressure remains on the Forex market, but it has been declining steadily since November 2017.

Omicron Pressure Remains on Forex Market

 

  • Virus fears persist as cases in the United Kingdom are admitted to hospitals.
  • Due to a stronger dollar, the euro and sterling have fallen in value.
  • Despite concerns about inflation, stock futures are up.

The currency market has been under pressure moving into another week, as the dollar has regained momentum. As the Omicron variety continues to spread over the globe, this strength seems to have stemmed from COVID-19 worry. Another factor supporting the Dollar is the Fed’s expected hawkish tilt, though this has yet to be verified. The Omicron variety has caused the first hospitalizations in the United Kingdom, which has had a detrimental influence on the Pound. Despite these concerns, early Wall Street trade has been encouraging, with all of the main indexes heading higher.

The first hospitalizations in the United Kingdom have taken a toll on the pound sterling.

In recent weeks, the Pound has had a particularly difficult time. It has now been impeded by a rise of COVID cases, particularly the new Omicron variety, on top of coping with continuing Brexit difficulties and a higher Dollar. The GBP/USD currency pair is presently trading around 1.32. 

This comes after more than 1,000 individuals in the UK have been hospitalized as a result of Omicron, and British Prime Minister Boris Johnson has issued stern warnings that the country has to pay attention to this new version and obtain a booster injection for improved protection. This, together with the stronger Dollar and other internal difficulties, has stifled the Pound. The possibility that the Bank of England may opt out of any future rate rise might help the pound, but only to a limited amount.

As Uncertainty Persists, the Euro is on the defensive.

Early trade has witnessed a pullback in the Euro, as the currency pulls back due to prevailing Dollar strength and an increase in US Treasury Yields. The single currency will also be hampered by the rise of COVID-19 cases and differing measures to dealing with the disease throughout the bloc, including vaccination requirements.

The ECB meeting on Thursday looks to be the market’s main focus this week. This conference will provide officials more clarity on how to tackle the present situation. To far, there have been conflicting indications about whether or not the current favorable policies would be maintained.

Wall Street is off to a good start this week.

To begin the week, stocks seem to have shut out the concerns with FX brokers. All of the main US indexes are up in early trade. Despite alarming inflation numbers revealed last week, this is the case. November’s headline figure of 6.8% was the highest year-over-year increase since 1982.

These early gains seem to be more tied to the Omicron issue and the fact that the market may have been oversold when news of the variation was initially disclosed, adding to the euphoria near the end of last week. The market seems to have factored in the possibility of a more hawkish Fed policy and a rate rise.

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