The financial market came to a sudden halt recently after the concerns regarding the omicron variant started surging. However, hospitalization reports from Denmark show a usually mild reaction from the variant.
However, the severity of the matter is yet to be resolved. Meanwhile, the market is also eyeing the Federal Reserve’s upcoming release, which might initiate a policy tilt to address inflation.
The Forex market started the week with uncertainty and quietly due to low price volatility. Since there are no indications regarding the market’s next shift, Forex traders will mostly lay low till the Fed’s decision. If the market bounces off any resistance or support levels that resemble clear consolidation patterns, the scenario changes dramatically.
Currently, only two major currencies are showing healthy movements – the Australian dollar and the British pound. On the other side of the market, the Turkish Lira dropped to its all-time low after rumors regarding the Turkish central bank cutting rates surfaced.
The currency did not take long to recuperate as the central bank chimed in to clear the rumors. However, the move did not yield lasting results as the currency started falling shortly.
Besides the uncertain market conditions, rising omicron variant cases have also affected the market. Regions surrounding Denmark and the United Kingdom are experiencing a severe increase in the number of affected. For example, the UK government recently provided a rough 40% estimate of new cases in London.
Authorities are trying to vaccinate almost 50% of the eligible adults in December alone. While the numbers are impressive, the nation would need to vaccinate 1 million people every day to achieve the estimated figures.
The worldwide number of affected people has crossed 271 million with a 1.97% fatality rate. On the other hand, over 56% of the world’s population is vaccinated with at least one dose. As things stand, the market will take some time before shaping into its usual pattern.