ForexLive Asia FX news wrap: Risk slips as US reports Omicron cases

Forex news for Asia trading on
Friday
3
December 2021

US equity index futures slid
lower on the session, beginning with the news crossing wires that 5
COVID-19 Omicron cases were reported in New York state. Yes, not a
typo, 5. S&P500 futures dropped on Globex.

After
steadying equity index futures were sold off once again as the news
compounded with 1 case in Hawaii and 1 in LA County (yes, no typos
again, 1 and 1). Its not like the slide was anything near the
magnitude of the Wednesday drop into the cash market close but it was
noticeable regardless.

FX
did not show much of a response on the NY report but soon followed
along with the equity moves, the USD gaining against AUD, NZD, CAD.
EUR/USD, GBP/USD and USD/JPY have
been not
as clearly
impacted, with smaller
moves only. Indeed, as I post EUR/USD and USD/JPY are barely net
changed on the session.

Accompanying
the reports of numbers of new cases were also further details about
how the cases were on the mild side. Given the tiny number of cases
its still too early to draw significant conclusions.

In
other news out of the US both houses of Congress passed the bill
approving ongoing funding for the government. A shut down would have
occurred otherwise. Once the bill is signed by US President Biden
funding has been secured through until February 18. 

Wariness over Omicron may reduce the desire to hold risk positions over this coming weekend. At least with crypto you can keep trading though:

Forex news for Asia trading onFriday3December 2021

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