GBP/USD: GBP/USD has ended the US session in an uptrend, reaching the weekly highs, which leaves the markets in the bullish mood for the remaining sessions ahead of the holidays. The cable is currently trading higher by some 0.8% after ascending from local lows to a high of 1.3363. Investors’ assessment of the Omicron variant made the market mood worse before Wall Street opened. Nevertheless, at the last hour, equities rose and risk-sensitive currencies, led by the British pound, advanced. Furthermore, risk appetite improved after the reports that
South Africans contracting Covid-19 in the current fourth wave of infections are 80% less likely to be hospitalized if they catch the omicron variant, compared with other strains.
EUR/USD: The EUR/USD pair is extending its gains during an early session and has recently broken its weekly high. The buyers are now attempting to push the market to the 1.1320s level. Despite a broadly calm market in other asset classes like bonds or equities, FX markets took a risky mood yesterday, although most major currency pairs have not broken out of their recent weekly ranges. The GDP data didn’t affect the pair, probably because, at this point, they are very backward-looking and were already priced in. Meanwhile, the US Consumer Confidence growth in December will probably affect the US dollar. Still, it’s worth noting that any improvement is likely to be short-lived, with a wave of Omicron infections.
Gold: Gold keeps growing after the rally from $1.800 support on the daily chart, which was an endpoint of the downtrend for 3 days in a row. The yellow metal is bullish and buyers have their eyes on the $1.830 -$1.850 resistance zone for the weeks ahead. The US dollar was lower, which pushed the gold prices higher due to the optimism that the Omicron coronavirus variant would not ruin the economic recovery. According to early results from three trials, people infected with Omicron are less likely to be hospitalized compared with the delta variant. Meanwhile, the US existing home sales in November for the third consecutive month, while Consumer Confidence surged more than expected in December as Americans’ outlook for employment and the economy improved.