AMarkets App

AMarkets App

The best trading app

The best trading app

ratings of app
Download

Dollar dips on Omicron variant fears; Oil pulled back from its lows

November 29, 2021

EUR/USD: EUR/USD is pulling back to the 1.1280 level during Monday’s Asia session, following the heaviest daily gain of this year. New coronavirus variant ‘Omicron’ shocked markets and the US dollar on Friday before it started recovering losses a few hours ago. The European Central Bank hasn’t decided on any “hawkish” moves like rate-hiking or setting new limits for Pandemic Emergency Purchase Programme, and the latest coronavirus news offered another reason for them to turn dovish. It’s worth noting that US President Joe Bide and ECB President Christine Lagarde are up for speeches, which keeps the EUR/USD traders cautious ahead of the events. Also, we recommend paying attention to the US housing data and German inflation data from Europe, scheduled to be published this week.


BUY LIMIT 1.1205/TP 1.1400/SL 1.1165

 

GBP/USD: The GBP/USD pair, which was affected by the central bank announcements for the last weeks, is now facing the risk of the latest coronavirus threat. Bears attempt to pressure the market considering the latest sell-off in the US dollar and weekend reports that Omicron has reached the UK. GBP/USD pulled back sharply in the last hour, reaching the support around 1.3300 level. Traders will be looking to see if this area will hold, considering that the Bank of England will now need to deal with Omicron. The divergence between the Bank of England and the Federal Reserve has been a key driver. However, covid risks could be more important as the UK and EU cases can lead to new containment measures.


SELL 1.3340/TP 1.3270/SL 1.3370

 

WTI: WTI showed a bullish dynamic on the market opening after a 13% downtrend while trying to hold the $70 level during the Asian session. Despite this, the oil maintains the previous day’s downside break of the support line, which became a resistance while keeping the sellers the main drivers. The latest oil markets volatility hasn’t gone unnoticed by OPEC+. According to sources cited by Reuters, OPEC+ is monitoring developments around the new, concerning Covid-19 variant and some members are expressing concern that it may negatively affect the outlook for oil markets. The group is meeting next week to decide on oil production policy, and there are already some rumors that they might implement new output cuts.


BUY 71.50/TP 74.60/SL 69.90