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Dollar recovers; WTI is bearish amid Omicron variant concerns

December 02, 2021

EUR/USD: EUR/USD pair showed mixed dynamic yesterday and now trading around 1.1320 level. The currency pair’s latest moves disagree with the fall in the US Treasury yields, and the market sentiment is following the fresh updates over the South African variant of the coronavirus and the Federal Reserve and the European Central Bank. Strong US macroeconomic data and Fed Chair Jerome Powell’s testimony boosted the risky sentiment. US ADP Employment Change and ISM Manufacturing PMI details for November ticked above market expectations. Moving on, EU Unemployment Rate in October and US Weekly Jobless Claims can affect EUR/USD traders.

BUY LIMIT 1.1260/TP 1.1400/SL 1.1175


NZD/USD: Kiwi pair is bearish, trading around short-term support level of 0.6800, having reversed the previous pullback from its annual low. Moreover, the Kiwi pair is pretty pressured by the fresh covid variant woes and the hawkish Fed concerns. In addition to the risk catalysts, downbeat trade data, in contrast to the stronger US economics also exert pressure on the NZD/USD prices. Federal Reserve Chairman Jerome Powell confirmed his inflation fears and said he still believes inflation will come down in the second half of the next year, during his testimony against a Senate Commission. Moreover, the solid US data supporting the Fed’s hawkish view can also support the US dollar in the middle-term perspective.

SELL STOP 0.6750/TP 0.6450/SL 0.6860


WTI: Oil prices pulled back from earlier highs in recent trade, having reached 69.00 level during yesterday’s European session. Now it trades above the 66.00 level, but WTI is still higher for more than $2 from Tuesday lows. Despite the recent pullback, prices are only slightly higher than neutral on the day. Elsewhere, there has been lots of news about OPEC+. OPEC met on Wednesday ahead of a meeting of the full OPEC+ group on Thursday and hasn’t made any decision on output policy as expected. That decision will come today and analysts expect the cartel to cut the recent output hikes of 400K barrels per day. Reuters, citing an OPEC+ document, reported yesterday that the cartel expects a worsening of the oil market situation in the first quarter of 2022, with supply exceeding demand by 3.8 mln barrels per day by March.

SELL 65.70/TP 63.00/SL 67.00