Dollar Down, Omicron Fears Counter Brighter Economic Outlook By Investing.comthaiphan November 20, 2023 Article
The dollar was down on Thursday morning in Asia as optimism about the global economic outlook whetted investors’ risk appetite. However, the continuous, rapid spread of the omicron COVID-19 variant remains a concern.
The that tracks the greenback against a basket of other currencies inched down 0.03% to 96.028 by 11:09 PM ET (4:09 AM GMT).
The pair inched up 0.02% to 114.13.
The pair inched down 0.1% to 0.7206 and the pair inched up 0.03% to 0.6808.
The pair inched up 0.02% to 6.3707 while the pair stablized at 1.3348.
After being rattled by omicron’s spread and ensuing government restrictions earlier in the week, risk sentiment has improved. A South African study showed that patients with the omicron variant have reduced risks of hospitalization and severe disease compared with the delta variant.
Also contributing to improved sentiment, Pfizer Inc.’s (NYSE:) COVID-19 antiviral therapy, Paxlovid, from the U.S. Food and Drug Administration on Wednesday.
On the data front, Wednesday’s data from the U.S. showed that the grew 2.3% quarter-on-quarter in the third quarter of 2021. were at 6.46 million for November and the was at 115.8 for December.
More data is due later in the day, including , , , and the . It also includes and , as well as the University of Michigan and indexes.
Central banks are also tightening monetary policy, with the U.S. Federal Reserve adopting a hawkish tone at its latest policy meeting.
“Ongoing data strength should help bolster Fed pricing, particularly amid reports that omicron appears to be leading to fewer hospitalizations,” TD Securities analysts said in a report.
The Bank of England also raised its interest rate to 0.25% in its latest policy decision last week. However, the surprise move has “offered only some time-limited support to the pound, but the fast spread of the omicron in the U.K. may keep some pressure on the pound around Christmas, in particular as the government may opt to impose some new restrictions,” ING said in a recent note.
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