Here is what you need to know on Monday, December 6:

The market mood remains cautiously optimistic, as investors assess the implications of faster Fed’s tightening and tapering against the incoming encouraging news on the Omicron covid variant.

Bloomberg reported that the new variant cases have surged South Africa, although the good news is that patients need less medical intervention. Meanwhile, investors remain hopeful that a could be found to fight the Omicron covid strain. Adding to the optimism, US medical adviser Anthony Fauci said the variant’s severity may be limited.

The S&P 500 futures gain 0.55% so far this Monday, reflecting the broader market optimism while the risk-on flows reduce the demand for the US Treasuries, triggering an impressive bounce in the yields across the curve.

The rebound in the US rates is propping up the dollar’s demand, as the hawkish Fed expectations remain alive and kicking, despite the mixed employment data and upbeat ISM Services PMI. The headline Nonfarm Payrolls rose by 210K in November vs. 550K expected but an upward revision to the previous figure and an uptick in the participation rate back the Fed’s rate hike calls.

Among other relevant news, Friday’s comments from China’s Premier Li Keqiang stoked up Reserve Ratio Requirement (RRR) cut expectations as soon as this month. China's 10-year yields dropped 5 bps to 2.85%.

Stimulus hopes from Beijing kept the sentiment buoyed around the Chinese stock, hit by the recent concerns over the country’s technology sector. The Nikkei 225 and Australian equities traded flat to lower.

Across the G10 currencies space, the aussie outperforms amid stronger Australian job ads data, which flagged risks of a hawkish surprise from the RBA.

Meanwhile, EUR/USD is trading under pressure below 1.1300 while GBP/USD is consolidating the bounce above 1.3200, with investors sceptical amid looming Brexit and covid risks.  

USD/JPY recaptures 113.00, tracking the renewed upside in the Treasury yields. USD/CAD is heading lower towards 1.2800 amid a roughly 3% upswing in WTI prices. The black gold is battling the $68 mark amid risk recovery.

Gold is holding onto Friday’s solid turnaround from four-week troughs of $1,761 amid the mixed sentiment and firmer yields.

A quiet start to the week will leave the market at the mercy of the risk sentiment and the latest Omicron updates. The economic calendar light, with the German Factory Orders, Eurozone Sentix and BOE policymaker Ben Broadbent’s speech of note. The key event risk this week is expected to be the US Consumer Price Index (CPI) due for release on Friday.

Bitcoin is licking its wounds after the weekend’s turmoil. The pioneer cryptocurrency currently trading about 1.50% lower on the day, around $48,750.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD retreating from around 0.7000

AUD/USD retreating from around 0.7000

The AUD/USD pair hit 0.7008 before retreating, following US stocks’ behavior. Wall Street benefited from easing US government bond yields but ended the day mixed ahead of critical US data.

AUD/USD News

EURUSD bulls losing the battle around 1.0200

EURUSD bulls losing the battle around 1.0200

EUR/USD edged higher on Monday, but remains unable to clear the 1.0200 threshold, trading a handful of pips below the figure. The energy crisis in Europe and tensions with Russia undermined demand for the EUR.

EUR/USD News

Gold bulls looking to overcome the $1,800 barrier

Gold bulls looking to overcome the $1,800 barrier

Gold advanced on Monday, reaching an intraday high of $1,790.01 a troy ounce during the American afternoon, holding nearby. The greenback gave back the Nonfarm Payrolls report-inspired gains and eased on the back of retreating US government bond yields.

Gold News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Are your bags packed for FOMO Season?

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Are your bags packed for FOMO Season?

The crypto market shows strength to start the second trading week of August, and key levels have been identified. Although it's still early market, current prices may be the ultimate discount in hindsight.

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

Forex MAJORS

Cryptocurrencies

Signatures