Risk appetite is growing every day

GBP/USD: Sterling strengthened against dollar on Wednesday as investors looked beyond a surge in Omicron cases and favored riskier currencies. Britain reported a record 129 000 new cases of COVID-19 on Tuesday, a day after Prime Minister Boris Johnson said he would not bring in new restrictions this year to limit the spread of the Omicron coronavirus variant. Investor sentiment has been buoyed in recent days by signs the Omicron variant, while causing a jump in cases to record highs in many countries, is not leading to new, widespread lockdowns. Immediate resistance can be seen at 1.35. A breakout to the upside can trigger growth towards 1.3550.


BUY STOP 1.35/TP 1.3550/SL 1.3480

 

EUR/USD: The euro strengthened on Wednesday as investors focused on central banks tapering, while risk sentiment was back amid fading concerns about the economic impact of the Omicron variant. Trading was thin as most traders took time off for Christmas or the end of the year, while optimism that the Omicron coronavirus variant would not derail global economic momentum was the main driver of risk appetite. Apparently, the situation will not change in the near future, so we forecast a moderate recovery of the euro by the end of this year. Immediate resistance can be seen at 1.1350. A breakout up can trigger growth towards 1.14.

BUY STOP 1.1350/TP 1.14/SL 1.1330

 

USD/CAD: The Canadian dollar strengthened against U.S. dollar on Wednesday as higher oil prices and weaker dollar boosted Canadian dollar across the board. Oil prices rose on Wednesday, after government data showed U.S. crude and fuel inventories fell last week, offsetting concerns that rising coronavirus cases might reduce demand. The loonie was trading 0.10 percent higher at 1.2774 to the greenback, having touched its strongest intraday low at 1.2836. Immediate support is located at 1.2770. A breakout below this mark could take the pair towards 1.2720.

SELL STOP 1.2770/TP 1.2720/SL 1.2790

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