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The US Dollar Index fell by 0.04%, sitting at 96.48 during the New York session. The market sentiment is positive, with major US shares rising between 1.60% and 2.80%.
US President Joe Biden has said those not fully vaccinated have good reason to be concerned about omicron. All Americans have patriotic duty to get vaccinated, Biden added.
Biden also noted “We are not going back to March 2020, we can keep our K-12 schools open”. US markets are brushing the risk-off on Tuesday. Stocks have rallied in midday trading and was rebounding from a slump in the previous session as risk appetite improved.
The market mood improved as investors assessment that vaccines helped tame the Omicron virus outbreak. The US FDA is expected to authorize pills from Pfizer and Merck to treat Covid-19 as soon as this week.
In the US bond market, the Treasury yields have risen in the whole curve. The 2s, 5s, and 10s increase between four and six basis points, sitting at 0.6685%, 1.2238%, and 1.474%.
Gold retreated during the New York session, trading at $1,788 at the time of writing. Appetite for riskier assets spurred by vaccines helping tame the Omicron variant Covid-19 treatment pills boost the US dollar, to the disadvantage of the safe-haven gold.
Economic Data
The Euro seemed to take a hit in wake of the day and EUR/USD fell to session lows. The Eurozone Consumer Confidence index fell to -8.3 in December from -6.8 in November according to the flash estimate released by the European Commission on Tuesday. That was below expectations for a drop to -8.0.
Today, inflation is less than half that and unemployment is at 4.2 percent. Core PCE [Personal Consumption Expenditures] for 2022 is now expected at 2.7% and for 2023 is forecast to be 2.3%.
Data released on Tuesday showed Retail Sales rose in Canada 1.6% in October, above expectations. According to analysts at the National Bank of Canada, the rebound at car dealers helps lift retail sales further above pre-crisis level.
Analysts also see October’s retail sales report heralding a strong end of the year for consumer spending.
Other Developments
Europe’s energy crisis got even worse after France declared severe nuclear outages and prices continued to balloon above Euro 300 MWh in almost every country on the continent.
Austria is second most expensive for electricity, with Euro 434.34 per MWh, followed by Belgium with Euro 432.99. Poland, whose electricity price was much lower than many other countries, saw its price spike by 110 percent in the last day to Euro 344.56 per MWh.
Also Read
Europe In Crisis, WTI Crude Above USD 71 Despite Positive Data
Wall Street Rebounds As Risk Appetite Surges
Biden Covid Speech: We are prepared for what’s coming
WTI Crude Climbs Back to USD 71
US Natural Gas Rebounds From Near 5-Month Low
US Shares Sharply Surge After Three Day Drop
US GDP Above Pre-Pandemic Levels In 2021
October Canada’s Retail Sales Stronger Than Expected
European Shares Surge On Vaccine-Related Hopes
Europe Alarmed By Looming Fifth Wave, Lockdowns
Eurozone Consumer Confidence Falls In December
