The U.S. dollar index rose 0.09% to 96.18, and it rose 2.2% in November, the biggest monthly increase since March 2020. The safe-haven status of the US dollar means that it has benefited from uncertainty, but the US dollar fell last Friday because investors believed that the Omicron variant may affect the timing of the Fed and other major central banks' interest rate hike plans.

Juan Perez, a foreign exchange strategist and trader at Tempus Inc, said that another challenge facing the global economic recovery seems to indicate that this is beneficial to the US dollar as a safe-haven asset. This variant is newly discovered, and it even seems that the medical community wants to Any negative economic impact that news about it might have is minimized. Our view is that we are once again at the mercy of the virus that has plagued us for two years, but this time, we feel more prepared to continue life no matter what.

The euro fell 0.5% against the dollar to 1.1258; the one-month implied volatility of the euro against the dollar hit its highest since December 2020 on Monday, and then fell.

Elsa Lignos, head of foreign exchange strategy at Royal Bank of Canada, said that the euro is still expected to fall against the dollar next year. I have held this view since the beginning of this year, and it is the same now. This is largely based on the cyclical strength of the United States relative to the Eurozone, and omicron has not changed my view so far.

The pound gave up its earlier gains and fell 0.16% to 1.3315 against the dollar; ING strategists Chris Turner and Francesco Pesole said that it may take a few weeks to learn more about omicron, so the pound may not be able to quickly regain its recent losses. We are optimistic about the euro against the pound. , For the time being, it will be in the 0.8400-0.8500 range.

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