Market Drivers – US Session – 28 December 2021

Mohamed Abdelhamid 29 December, 2021 2:39 am Commodities, Cryptocurrency, Forex Market, Global Stock Market

Major cryptocurrencies retreated amid concerns about the Omicron variant and holiday travel disruptions worldwide.

Bitcoin traded 7.4% lower from 24 hours ago at around USD 47,849. The cryptocurrency was down more than 30% from its record highs at USD 68,990 in November. Bitcoin has had a volatile end of year.

The US dollar received some market’s attention in the American session, Tuesday afternoon, reaping daily gains against most major rival currencies.

Wall Street opened with a firm tone and flirted with all-time highs, but turned lower soon afterwards, with major indexes ending the day mixed. In the absence of relevant news, investors focused on mounting speculation the US Federal Reserve may raise rates as soon as in March 2022.

US government bond yields maintained a low profile, holding at the lower end of their weekly range. The yield on the 10-year Treasury note hit 1.455% and currently stands at around 1.47%.

Economic Data
The Service Sector Activity Index in the US fifth district rose to +12.0 in December 2021 from +8 in the previous month.

The demand index increased by 8 points to +21 and the employment index remained in expansionary territory at +14.

Earnings continued to grow at a solid pace, with firms saying they expect to continue increasing wages in the next six months.

On the other hand, service providers continued to report trouble finding workers with the necessary skills, and don’t expect the difficulty to ease in the near term. On the price front, survey respondents expected the growth of both prices paid and prices received to slow in the next 12 months.

The Manufacturing Activity Index in the US fifth district rose to a 5-month high of 16 in December of 2021 from an upwardly revised 12 in November driven by increases in shipments and new orders.

Employment moderated but remained in expansionary territory. Backlogs of new orders registered their second highest index value on record, as vendor lead times remained high and inventories remained low.

Manufacturers reported continued investment spending. The average growth rate of prices paid and prices received by survey participants increased in December. Firms expect the growth rate of prices paid and prices received to slow over the next year.

Other Developments

Most European countries keep reporting record coronavirus contagions. However, top 3 Price Prediction Bitcoin, Ethereum, XRP: Cryptos struggle to hold holiday gains.

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