Dollar Falls While Yen and Swiss Franc Gain In Post-Omicron Gyrations

Dec 1, 2021

Dollar Falls While Yen and Swiss Franc Gain In Post-Omicron Gyrations

On Wednesday morning, the dollar sank versus the yen and the Swiss franc, despite riskier British and Australian currencies rising from day-ago lows.

The fluctuations highlighted the tenuous nature of the earlier-in-the-day tranquillity that appeared to settle over the foreign currency markets.

Traders are assessing the impact of the newly found Omicron coronavirus strain on Federal Reserve Chairman Jerome Powell's Tuesday statement of plans to boost interest rates more aggressively in the United States.

At 10:07 a.m. ET (1507 GMT), the dollar index, which measures the greenback's value against a basket of foreign currencies, was down 0.3 percent on the day to 95.682, down 0.1 percent versus the yen and 0.3 percent against the Swiss franc.

The pound, which is widely seen as a risky investment, was slightly higher at $1.3344, up about 0.4 percent. Concerns over the efficiency of inoculation against the Omicron strain brought the pound to its lowest level in nearly a year on Tuesday.

"We've been hearing a lot of conflicting information about the new version, and Powell's comments have thrown the markets for a loop," said Marc Chandler, chief market analyst at Bannockburn Global Forex.

"There is still some apprehension," Chandler continued.

On Tuesday, Powell warned that the danger of inflation has grown and that the central bank's bond-buying program may be expanded at its future meeting.

The dollar remained mostly unchanged following Wednesday's ADP data on private payrolls in the United States. It added 534,000 jobs last month, slightly more than the 525,000 economists polled by Reuters expected.

"It bodes well for another robust employment report" on Friday when the US government releases more detailed payroll data. "The next big event will be Friday's US jobs report."

This year, the dollar has climbed by 6%. November was the month's best performance since June.

The euro was trading at $1.1356 at 10:07 a.m. ET, up 0.2 percent on the day (1507 GMT).

On Monday, despite inconsistent virus and interest rate indicators, euro-dollar volatility gauges reached their highest levels of the year. In a client letter, ING strategists suggested that the Omicron variant might postpone the Fed's tightening cycle, benefitting the euro.

"Both subjects will receive numerous additional inputs over the next four weeks, and diminishing liquidity levels indicate tough conditions in the foreign currency markets," ING warned.

Prior to Omicron's launch, the fundamental driver of currency rates was forecasts of the various rates at which central banks would increase interest rates.

Australia's and New Zealand's currencies both gained, recovering from one-year lows. The Australian dollar gained 0.5% to $0.7168, while the New Zealand dollar gained 0.6% to $0.6866.

The Chinese yuan, which has been a pillar of stability in recent days, reached a six-month high of 6.3596 to the dollar on the back of stronger-than-expected November manufacturing data.

At 9:04 a.m. ET, Bitcoin was nearly 2% higher at $57,885. (1404 GMT).

Subscribe Our Newsletter

Expert Opinion: China’s Revised Delisting Rule Boosts Alibaba and Other Stocks
Expert Opinion: China’s Revised Delisting Rule Boosts Alibaba and Other Stocks

The Public Company Accounting Oversight Board (PCAOB) stated last week in a statement that it is continuing to communicate with Chinese authorities, but that its request for full access to relevant audit documents, especially from businesses in sensitive areas, is non-negotiable.

Companies
Coinbase Applies to Trade Crypto Futures
Coinbase Applies to Trade Crypto Futures

Coinbase has applied to the National Futures Association to become a registered Futures Commission Merchant (FCM) (NFA).

Crypto
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Alexander

How to Spot Cryptocurrency Scams
The cryptocurrency world is still relatively new and uncharted territory. Many of the concepts at play in this new economy can be complex and difficult to understand. This can make it challenging for those who are new to the space to get a grasp on how everything works.

discover
5 Best Forex CRM Solutions for 2023

Alexander

5 Best Forex CRM Solutions for 2023

Customer Relationship Management (CRM) is a technology designed to help businesses manage relationships with customers and prospects.

FinTech Awards
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.