The dollar rose on Wednesday, while the euro and riskier currencies such as the Australian dollar fell. Investors are bracing for increased volatility and the impact of increased cases of the omicron variant of Covid-19.
The important data // Amid small declines in the British pound – also benefiting from Tuesday’s rise – and the euro, the dollar index broke two days of losses and appreciated a bit, at 96.551 units, although it is still within its recent ranges.
- The Australian dollar lost 0.4 percent to $ 0.7121, and its New Zealand pair fell to $ 0.6742, after having advanced strongly the day before along with oil and world stocks.
Context // Movements in the currency market were generally low, as trading volumes are low on the eve of the Christmas holidays.
- The weeks before and after Christmas are typically low in volatility for currencies and other asset classes, ING analysts said, although “this year some seasonal trends will blend in with the omicron variant.”