USD Rose Slightly and Nasdaq Fell a Bit Anxious the Market

2021-12-29 17:48:38

Summary

On Tuesday (December 28), the U.S. dollar index rose slightly, regaining earlier losses, and trading was light at the end of the year; Swedish Krona and Norwegian Krone led the gains. The S&P 500 index fell for the first time in five trading days, and technology stocks led the decline. Spot gold rushed higher and fell back. It broke through the 1820 mark in the intraday trading and closed at around US$1806 in late trading. U.S. oil recorded a fifth consecutive trading day of gains. The market expects that the new crown Omi Keron mutant strain will have limited impact on economic growth, the production of crude oil from Ecuador, Libya, and Nigeria will be interrupted, and the expectation that U.S. crude oil inventories will fall sharply again, raises Boosted oil prices.

On Tuesday, the U.S. dollar index rose 0.09% to 96.15 in late trading; the S&P 500 index opened to a new high and continued its four consecutive days of gains, but then fell. The Nasdaq index was in decline throughout the trading day. Investors are paying attention to Omicron. Leading to travel interruptions and store closures.


Amo Sahota, director of Klarity FX, said that the decline in the Nasdaq made the market a little anxious. Investors are optimistic about the safe-haven US dollar in the next few days. However, he pointed out that, in the final analysis, due to the holiday, the market volume is very low, and any trend may be exaggerated. Most people just want to clean up, finish work, and then leave, so I don’t think there will be much market for the moment. Standard Chartered's Steven Englander predicts that the dollar may be nearing its peak; Englander said that any sign that global central banks need not be as aggressive as the market now expects will be a major bearish for the dollar.


The Fed stated in a policy statement on December 15 that as the economy approaches full employment and inflation continues to soar, it will end the pandemic-era bond purchase program in March, and will conduct three times of 25 bonds before the end of 2022. The base point of interest rate hikes pave the way.


The euro fell 0.16% against the dollar to 1.1310. The pound fell 0.05% against the dollar to 1.3434, having earlier hit a one-month high of 1.3462.


The safe-haven yen climbed against the U.S. dollar, after hitting its lowest level in a month during the Asian session. The yen rose 0.04% to 114.82 against the dollar, having fallen to 114.935 earlier, the lowest since November 26. Before the omicron ravaged, Japan's industrial output value set a record increase of 7.2% in November.


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