The dollar edged lower against the Euro in thin trading Thursday Asian session as investors looked beyond a surge in Omicron cases and favored riskier currencies.
Economic data released on Wednesday in the US showed Pending Home Sales dropped -2.2% in November, less than the previous readout of 7.5%. A different report showed the advance Goods Trade deficit widened to 97.8 billion dollars in November, from the 83.2 billion of the previous month and forecast of 89.18 billion.
In the ECB v/s Fed Battle, Amid the recent jump in the US inflation expectations, it is expected that the Fed will announce the much-awaited rate hike earlier in 2022 versus the ECB’s likely delay in the monetary policy tightening.
The European Central Bank (ECB) will not end tapering before 2023, Governing Council member Ignazio Visco said in an interview on Thursday. “Will maintain very favorable financing conditions for economy.”
Moving on to the Covid woes, France reported the world’s biggest-ever daily jump in COVID-19 infections with 179,807 new confirmed cases while the figures from New Zealand and China have been easing of late. The UK also marked a fresh all-time high of the daily virus cases with above 122,000 figures.
Reuters said, “The average number of new COVID-19 cases in the United States has risen 55% to over 205,000 per day over the last seven days.” Additionally, Australia’s most populous state New South Wales (NSW) reports doubling of the covid infections for Tuesday, with 11,201 new infections and three virus-led deaths.
However, Investor sentiment is boosted by signs the Omicron variant, while causing a jump in cases to record highs in many countries, is not leading to new, widespread lockdowns.
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