The Omicron variant gains momentum in Europe and the United States, scientists are rewriting their expectations for the pandemic next year. The United Kingdom took an unexpected initiative against the forecasts by raising its interest rates to 0.25% on Thursday, December 16. It is the second country after New Zealand to increase bank interest rates in the middle of the pandemic. Inflationary pressure for Boris Johnson is a priority. Lagarde also published its interest rate decisions to keep unchanged.
Countries are already reverting to measures previously used in the pandemic: restricting travel, reimposing mask requirements, advising against large gatherings for the winter holidays. While it has not returned to the starting point, a large part of the world will need to be vaccinated or exposed to COVID to overcome the worst of the pandemic, disease experts told Reuters. Germany already joins this initiative and the euro came out of its maximum levels on Friday.
The market took its gains in euros at the weekly close despite the good news and progress in production in Europe. EURUSD is trading for sale below 1.1230 to 1.1220. and 1.1210. Buy hope is limited to Monday’s market opening trading above 1.1250. Otherwise we have possible new annual lows for next week. It will depend on how the decisions of economic closings in Europe evolve in the festive dates. For now, investors will be attentive to sell with caution at annual lows.
GBPUSD managed to test the December highs and then return to mid-month prices. The next level is at 1.3220. Below this price we will have more sell pressure up to 1.3190. Buyers do not intervene at these levels. If Monday’s opening manages to hold above 1.3250, there is a buy possibility for next week.
Countries are already reverting to measures previously used in the pandemic: restricting travel, reimposing mask requirements, advising against large gatherings for the winter holidays. While it has not returned to the starting point, a large part of the world will need to be vaccinated or exposed to COVID to overcome the worst of the pandemic, disease experts told Reuters.
The dollar soaked up all the market panic at the last minute, bringing buyers back to their crosses. USDCAD once again managed to trade at 1.29 on the final day of Friday. Buyers could position themselves above 1.29 to 1.2920. Whereas if we have take profit for Monday or Tuesday we prepare for sell below 1.2870 to 1.2850 and extensions. USDCHF traversed its buy intervals for the third time this week. Meanwhile we expect sellers to return below 0.9230 to 0.9215 and 0.92. USDJPY managed to stay below 114.0. We may hold short strategies below 113.70 to 113.50 and 113.30. If the market continues to pressure the dollar because of the European situation then we will switch to buying over 113.80 to 114.0 and 114.20.
Gold and silver metal commodities posted a buy performance during the week. The closing of the weekly business on Friday, given a certain paranoia in the market initiated by the closing of Germany, forced buyers to withdraw at the last minute. In gold the price below 1800.0 is not optimal in these cases to buy. Faced with a fall of 1795.0 we will start to sell until 1788.0 and 1785.0. In silver, sell could be a good strategy from 22.30 to 22.20 and 22.10. The US SP500 and US30 indices also added to the panic sell, although only to December levels. These monthly lows again prepare the wave of buyers for the coming week.
Some scientists are not completely ready to give up hope that some parts of the world will emerge from the pandemic next year. More than 270 million people have been infected with COVID, according to the World Health Organization, while an estimated 57% of the world’s population has received at least one dose of vaccine, representing potential protection that did not exist. two years ago.
Even if that immunity isn’t that good against Omicron, it doesn’t mean it’s worthless. And that immunity is more effective against serious diseases than against infection, ”said Dr. David Dowdy, an infectious disease epidemiologist at Johns Hopkins.
So far, most studies looking at the effectiveness of Omicron vaccines have focused on neutralizing antibodies, which stick to the virus and prevent it from entering and infecting cells. Blood test results from fully vaccinated people show that Omicron has learned to escape neutralization; a booster dose could restore that protection.
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