By Peter Nurse
Investing.com – The dollar gains positions this Thursday, although it remains on the defensive, as interest in risk continues to be driven by positive news about the economic damage caused by the Omicron variant of Covid.
At 8:55 a.m. (CET), the, which follows the evolution of this currency with respect to a basket of six other main currencies, rises 0.2%, to 96.037, somewhat below the highs of the year registered at late November about 97.
The pair is down 0.1% to 113.53, the pair is down 0.2% at 1.1324, just below its one-week highs, and the, highly risk-sensitive, is up 0 , 1% to 0.7176, just below its weekly highs.
The pair fell 0.1% to 1.3203, after hitting 2021 lows on Wednesday after UK Prime Minister Boris Johnson imposed tougher restrictions on England over Covid-19, ordering people who work from home and wear the mask in public places. However, social gatherings will still be allowed. It has been politically impossible to restrict them due to public outrage over a party held last Christmas by staff at 10 Downing Street, in defiance of the Government’s own social distancing rules.
Despite this news from England, risk-friendly currencies saw increased demand this week on signs that the worst fears associated with the new variant of Covid may not come true.
Pfizer (NYSE 🙂 said Wednesday that three doses of its Covid-19 vaccine, developed with BioNTech (NASDAQ :), have neutralized the new Omicron variant in a laboratory test, indicating that booster vaccines could be key to the protection against infection.
“We have very effective vaccines that have been shown to be effective against every variant to date, in terms of severe illness and hospitalization, and there is no reason to expect that it won’t be” for Omicron, Mike Ryan, director, said Wednesday. of emergencies of the World Health Organization.
As the uncertainty surrounding the Omicron variant begins to dissipate, attention shifts back to central banks and how they address the conflict between tackling high inflation and ensuring continued growth.
The Federal Reserve is still expected to announce that it will accelerate the tapering of its bond buying program at its meeting next week, but the release of last week’s nonfarm employment report disappointed.
Traders will be awaiting the publication of the latest weekly data on, at 2:30 p.m. (CET), the most up-to-date indicator of the strength of the country’s labor market.
On the other hand, the pair rose 0.1%, to the level of 1.2659, after he decided on Wednesday to keep its overnight interest rates anchored at 0.25%, as expected, and reiterate its forecasts that the first rise could occur this coming April 2022.
The pair rises 0.1%, to 4.0680, after Poland’s central bank decided to raise its interest rates by 50 basis points, to 1.75%, while fighting faster inflation. of the last two decades.
The pair remains practically unchanged, at 6.3435, after the People’s Bank of China tried to curb its buoyant currency, setting its reference rates for the yuan at a weaker than expected level against the dollar.
The pair is targeting a 0.1% rise to the 322.22 level ahead of Thursday’s meeting of Hungary’s central bank, which is expected to implement its fifth interest rate hike in a month, in a bid to combat inflation, which is advancing at its fastest pace in 14 years.