EUR/USD rallies as European inflation climbs to new record, Oil prices drop 5% on Omicron concerns

EUR/USD rallies, as European inflation climbs to new record

In Europe, markets were moved by the news that the continent’s inflation rate for November climbed to a new high.

Figures from the Eurozone showed that the headline inflation rate was up to 4.9%, compared to expectations  of 4.5%.

The rate, which was higher than October’s  final reading of 4.1%,  is the highest level on record, since data began tracking Eurozone inflation statistics.

EURUSD rallied for a second consecutive session on the news, climbing to an intraday high of 1.1382, its highest level in 11-days.

Germany’s DAX 30 closed 1.18% lower on the news.

Oil prices drop 5% on Omicron concerns 

Oil prices were down by as much as 5% in Tuesday’s trading session, as Moderna’s CEO raised concerns on the vaccine’s efficacy against the Omicron variant.

The company’s CEO Stephane Bancel stated that, "There is no world, I think, where [the effectiveness] is the same level".

WTI crude fell to an intraday low of $65 per barrel, its lowest level since August 23rd as a result of the uncertainty.

Many believe if the vaccine is unable to act against the new variant, some governments may be forced into lockdowns as a response.

Many now wait to see what OPEC+ will do during next month’s meeting, to combat the recent price falls.