In an interview with Al Arabiya, the regional director for the Arab region of Orbex, Muhammad Al-Mariri, ruled out that the impact of the “Omicron” mutator on the performance of currencies and financial markets would amount to the level of policy adjustment. monetary policy in the United States.
Al-Mariri said that the impact of the mutation on the minutes expected by the US Federal Reserve will not be significant, according to current estimates, as regards the increase in interest rates, which should This year it goes up three times.
The US dollar traded below the highest level in two weeks on Wednesday as traders awaited the release of the minutes of the US Federal Reserve meeting in December amid expectations of an interest rate hike as early as March, which kept the yen near its lowest levels in 5 years.
The dollar has risen around 3% over the past two months, but its rally has stalled this week as traders are concerned about pushing it further. in high before the publication of the facts of the central bank meeting.
Proceedings of the meeting are expected to be released Wednesday at 19:00 GMT and could shed light on US policymakers’ sensitivity to inflation and their willingness to take action to combat it.
Australian and New Zealand dollars fell on fears that the spread of the coronavirus-mutated omicron could derail the economic recovery.
The pound was up 2.7% against the dollar in the 12 trading days since December 20, as traders believe the increase in Omicron cases in Great Britain will not dissuade the Bank of England from raising rates.
Gold prices rallied slightly on Wednesday as rising infections with the mutagen, Omicron, increased its demand as a safe haven for investments.
But the trade movement remained trapped in a limited interval, as investors awaited the details of the recent meeting of the political committee of the Reserve Board (the central bank of the United States). With the growing bets on rising interest rates.
Gold rose in spot transactions by 0.1% to $ 1817.10 an ounce at 1247 GMT and its price in transactions future in the US market it rose 0.2% to $ 1818.50.
In the other precious metals markets, the price of silver remained unchanged at $ 23.06 an ounce, the price of platinum increased by 0.9% to $ 980 an ounce and for palladium by 2.1% to $ 1,910.08 per ounce.
“When there is a tale rising bond yields undermine the attractiveness of inflation hedging… It is not really surprising to see gold start lower, ”said Ilya Spivak, currency strategist at Daily FX.
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