The governments have started to consider reducing the amount of time people need to isolate themselves with COVID-19. Why, if cases are surging? It is because we are moving from a COVID pandemic to COVID being endemic.

Omicron has swept the UK and once it has the vast majority of people will have been either vaccinated, infected with COVID, or both. However, the peak seems to have now passed. This means that the majority of people have a whole host of antibodies to deal with COVID-19 and future variants are likely to be even less deadly. This is why Bill Gates has recently said that once Omicron has passed Covid will be more like the seasonal flu. People may take a seasonal jab.

China

One tail risk to the latest omicron surge has been China. Will China maintain their Covid-zero policy and shut down whole cities for a relatively small number of cases? The answer seems to be moving to ‘no, they won’t’. According to Bloomberg’s Shuli Ren, “Covid zero” is no longer China’s policy goal. Rather, it’s aiming for “dynamic clearing”, which relies on local governments to stamp out local outbreaks. So, with the winter Olympics just a few weeks away there may be some harsh measures, but once they have cleared then the ‘dynamic clearing narrative’ seems set to stay.

The Fed’s actions

The Fed is now ending QE, hiking rates three times at least this year, and looking at starting QT this year.

The takeaway

The actions are of the governments and central banks unwinding the supportive measures quickly. How can we tell when we are definitely in an endemic phase? Some of the telltale signs are when masks are not as highly required to be worn, self-isolation times are reduced, schools and businesses remain open and the disruptions of 2020 are not implemented.


Learn more about HYCM

High Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD drops towards 1.0150 amid risk-aversion, ahead of US data

EUR/USD drops towards 1.0150 amid risk-aversion, ahead of US data

EUR/USD turns south after rejection at 1.0200 as risk-off flows dominate. US dollar finds demand, despite weaker yields and cautious Fed minutes. The euro looks vulnerable amid the deepening EU energy crisis and growth risks.

EUR/USD News

GBP/USD: Bears tighten grips on the way to 1.1930

GBP/USD: Bears tighten grips on the way to 1.1930

GBP/USD extends the previous day’s pullback from 21-DMA as MACD teases bears. Weekly low holds the key to further downside towards May’s bottom. Previous resistance line from April appears a tough nut to crack for bears. Two-month-old resistance line, 100-DMA adds to the upside filters.

GBP/USD News

Gold eyes a daily close below 21 DMA for further downside Premium

Gold eyes a daily close below 21 DMA for further downside

Gold price is fading the early bounce this Thursday, as the US dollar is seeing renewed buying interest amid the extension of risk-off flows. Dire Chinese economic outlook combined with Fed’s caution on a potential downturn keep investors on the edge.

Gold News

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price is on the verge of triggering another run-up, but it needs to allow investors who partook in the previous rally to book profits. As a result, more market participants are likely to flock around the next support level, triggering another leg-up.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures