Forex news for North American trading on November 29, 2021:
- Gold down $8 to $1783
- US 10-year yields up 3 bps to 1.51%
- WTI crude oil up $1.41 to $69.56
- S&P 500 up 60 points to 4655
- CAD leads, EUR lags
The market was holding its breath today on omicron and I don’t think you can exhale yet. There was some optimism but aside from the Nasdaq, the recovery was certainly incomplete. In other cases it was non-existent.
In FX, there was largely a standstill as the dollar clawed back only 30 pips against the yen as yields failed to get a real uplift. US 10s rose as high as 1.60% before falling back to 1.51%, up just 3 bps on the day. I fear that’s the signal in the noise but it might just represent a wait-and-see attitude.
Cable was weak is covid curbs go back into effect in a country that had seemingly moved past the virus.
The commodity currencies finished largely flat against the US dollar and only moderately higher against the yen. CAD/JPY stalled around the 38.2% retracement of the omicron fall and then sagged.