In Asia, the dollar traded lower as investors’ risk appetite was piqued by optimism about the global economic prospects. The constant spread of the omicron COVID-19 variation is a source of concern.
Risk sentiment has rebounded since the scare of omicron’s spread and the resulting government limitations throughout the week. Patients undergoing the treatment of the omicron version face less chance of severe illness than those with the delta variant, according to South African research.
Paxlovid, Pfizer Inc.’s COVID-19 treatment, gained instant use from the US Food and Drug Administration, adding to better sentiment.
Statistically, the United States’ GDP increased by 2.3 percent quarterly in 2021, according to figures released on Wednesday. 6.46 million existing homes were sold in November, while the Conference Board Consumer Confidence Index was 115.8 in December.
More statistics, including jobless claims, selling of new homes, ordering durable goods, and the price index of PCE, will be released later in the day. It also covers spending and personal income, consumer mood, and Michigan Consumer Expectations indices from the University of Michigan.
Central banks are tightening monetary policy, with the Federal Reserve of the United States adopting a hawkish stance at a recent policy meeting.
Continued data strength should support Fed pricing, especially in light of indications that less chance of hospitalization is required in omicron.
The Bank of England boosted its interest rate to 0.25 percent in its most recent policy move. The surprising dramatic has provided limited assistance to the fluctuating pound. Still, the fast-spreading omicron in the UK may lead to central pressure over the pound during the Christmas period, especially if the government decides to apply more restrictions.