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America’s Roundup: Dollar dips on new coronavirus variant fear, Wall Street ends lower,Gold heads for worst week since mid-Jun, Oil settles down $10/bbl in largest daily drop since April 2020-November 27th,2021

Market Roundup

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Currency Summaries

EUR/USD: The euro rose against dollar on Friday after the discovery of a new, potentially vaccine-resistant coronavirus variant saw investors dump riskier assets like dollar. The market swings come against a backdrop of already growing concern about COVID-19 outbreaks driving restrictions on movement and activity in Europe and beyond. European countries have expanded COVID-19 booster vaccinations and tightened curbs. Slovakia announced a two-week lockdown, the Czech government will shut bars early and Germany crossed the threshold of 100,000 COVID-19-related deaths. The euro rose 1.01% to $1.1315. Immediate resistance can be seen at 1.1304(11DMA), an upside break can trigger rise towards 1.1322 (50%fib).On the downside, immediate support is seen at 1.1261(38.2 % fib), a break below could take the pair towards 1.1190(23.6%fib).

GBP/USD: Sterling initially dipped against dollar  but recovered above 1.3300 level as the British currency found itself caught up in panic over a new COVID-19 variant described as the most concerning yet. Sterling has been falling in recent weeks in October it traded above $1.38 sent lower first by disappointment the BoE did not raise rates this month and more recently by worries over slowing economic momentum and growing expectations of tighter monetary policy in the United States, which has boosted the dollar.After falling to as low as $1.3278, sterling had recovered to $1.3333 in late US session. Immediate resistance can be seen at 1.3345(5DMA), an upside break can trigger rise towards 1.3399(50%fib).On the downside, immediate support is seen at 1.3312 (23.6%fib), a break below could take the pair towards 1.3255 (Lower BB).

USD/CAD: The Canadian dollar on Friday posted its biggest decline in more than three months against its U.S. counterpart as news of a new, possibly vaccine-resistant coronavirus variant spooked global financial markets. Global stocks  and oil, one of Canada's major exports, tumbled as investors worried that the variant could dampen economic growth.U.S. crude prices settled down 13.1% at $68.15 a barrel, while the Canadian dollar was trading 0.9% lower at 1.2760 to the greenback , its biggest decline since Aug. For the week, the currency was down 1%, its sixth straight weekly decline. That's the longest losing streak since August 2019 .Immediate resistance can be seen at 1.3163 (21 DMA), an upside break can trigger rise towards 1.3215 (50 DMA).On the downside, immediate support is seen at 1.3104(9 DMA), a break below could take the pair towards 1.2988 (Lower BB).


USD/JPY: The dollar declined sharply against the Japanese yen on Friday as investors reacted to a newly-identified coronavirus variant spreading in South Africa by piling into safe haven assets. The variant was considered by scientists to be the most significant yet found, Britain said on Friday, adding that authorities needed to ascertain whether or not it made vaccines ineffective. As investors dashed for safe-haven assets, the yen jumped more than 1% to around 113.30 per dollar, having languished earlier this week at five-year lows. Strong resistance can be seen at 114.44 (50% fib), an upside break can trigger rise towards 114.88 (38.2%fib).On the downside, immediate support is seen at 113.98(50%fib), a break below could take the pair towards 113.41 (61.8% fib).

Equities Recap

European stocks plummeted amid widespread selling on Friday, as reports of a newly identified and possibly vaccine-resistant coronavirus variant stoked fears of a fresh hit to the global economy and drove investors out of riskier assets.

UK's benchmark FTSE 100 closed down by  3.64 percent, Germany's Dax ended down by 4.35 percent, France’s CAC finished the day down by 4.75 percent.                

U.S. stock indexes closed sharply lower on Friday, with travel, bank and commodity-linked stocks bearing the brunt of a selloff triggered by the discovery of a new and possibly vaccine-resistant coronavirus variant..

  Dow Jones was down by 2.53 percent, S&P 500 was down by 2.27 percent, Nasdaq was  down  by 2.23 percent.

Treasuries Recap

Concerns about a new coronavirus variant on Friday drove the sharpest rally in short-dated U.S. Treasuries since the pandemic took hold, as investors scurried for safe-haven assets and pared some of their bets on rate hikes through next year.

Ten-year yields were also down 12 bps, the biggest drop since February this year, to around 1.53% and five year yields tumbled 14 bps to around 1.19%. Bond yields fall when prices rise.

Commodities Recap

Gold steadied on Friday, taking a breather after an over 1% rally sparked by a rush into safe-havens as concerns over a new coronavirus variant rattled risk appetite.

Spot gold rose 0.2% to $1,791.97 per ounce by 1349 p.m. ET (1849 GMT), after going up as high as $1,815.26. U.S. gold futures settled 0.1% higher at $1,785.5.

Oil prices plunged $10 a barrel on Friday, their largest one-day drop since April 2020, as a new variant of the coronavirus spooked investors and added to concerns that a supply surplus could swell in the first quarter.

Brent crude settled down $9.50, or 11.6%, to $72.72 a barrel, a weekly decline of more than 8%.

U.S. West Texas Intermediate (WTI) crude settled down $10.24 on Friday, or 13.1%, at $68.15 a barrel.

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