COVID-19 Omicron effect on WTI and Indices, EUR rebounding? Nonfarm Payrolls this week [Video]

Brad Alexander FX Large Limited

Welcome to this week’s Market Blast Fundamentals.

I’m Brad Alexander and, on behalf of Valutrades, today we will take a look at EURUSD, EURJPY, the NASDAQ (US100), the S&P500 (US500), and WTI (US Oil).

We can see the big drop in the price of WTI last week as the markets feared the effect of lower demand caused by the new COVID variation — Omicron.

However, this morning, prices have rebounded as the medical data on the virus, over the weekend, may not be as bad as many feared.

World leaders released 10s of millions of barrels of oil from their reserves having little affect on prices, last week, as this was mostly a political strategy.

So, as usual, any positive news on COVID should push the prices of Crude Oil higher and news on a colder winter in Europe will also affect prices.

We have seen the same pattern with all the Global Stock Indices as equities fell last week but futures prices are rising now as bargain-hunters are buying back into the markets.

Here as well, any positive news on the new COVID variant will drive prices higher on indices like the NASDAQ, S&P500 and the DAX40.

We see many investors already “Buying the Dip”.

We saw a EUR rebound last week with a slight pullback this morning on all pairs except EURJPY and we will be listening to what Christine Lagarde has to say about the economy, inflation and Interest rates this week.

We have lots of economic news this week and investors will still be waiting for information on Interest Rates from the Bank of England and the US Federal Reserve.

Author

Brad Alexander

FX Large Limited

Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.

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