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01.12.2021

Asian session review: the US dollar traded mixed against major currencies

TimeCountryEventPeriodPrevious valueForecastActual
00:30JapanManufacturing PMINovember53.2 54.5
00:30AustraliaGross Domestic Product (YoY)Quarter III9.5%3%3.9%
00:30AustraliaGross Domestic Product (QoQ)Quarter III0.7%-2.7%-1.9%
01:45ChinaMarkit/Caixin Manufacturing PMINovember50.650.549.9
07:00United KingdomNationwide house price index, y/yNovember9.9%9.3%10.0%
07:00United KingdomNationwide house price index November0.7%0.5%0.9%
07:00GermanyRetail sales, real adjusted October-1.9%1%-0.3%
07:00GermanyRetail sales, real unadjusted, y/yOctober-0.9%-2%-2.9%
07:30SwitzerlandConsumer Price Index (MoM) November0.3%-0.1%0.0%
07:30SwitzerlandConsumer Price Index (YoY)November1.2%1.4%1.5%


During today's Asian trading, the US dollar rose against the euro and the yen, but declined against the pound, as well as the Australian and New Zealand dollars.

Traders are focused on the situation with the identification of a new strain of COVID-19 "omicron" and its consequences for the growth of the global economy.

The first cases of omicron have been confirmed in Brazil. Thus, Brazil became the 20th country in the world to report the discovery of a new strain of coronavirus.

In order to prevent the spread of omicron in the country, the US administration is preparing stricter testing requirements for everyone entering, including Americans, sources said.

Chairman of the Federal Reserve System Jerome Powell warned that the spread of a new strain of COVID-19 "omicron" carries risks for both parts of the Central Bank's mandate, since it can, on the one hand, worsen the problem of inflation, and on the other - limit employment.

"The renewed increase in the incidence of COVID-19 and the emergence of the omicron strain carry downside risks for employment and economic activity, while creating additional uncertainty about inflation," Powell said. "The growth of fears associated with the new strain will reduce people's desire to work full-time, and this will slow down the recovery of the labor market and exacerbate problems in supply chains."

Powell's statement was taken by traders as a signal that the Fed's base rate hike could be pushed back further than previously expected.

The ICE index, which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), fell by 0.04%.

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