Investors appeared cautious as they monitor the spread of the Omicron variant, with the UK announcing its first omicron death yesterday.
The Asian Development Bank downgraded its growth forecast for China, to 8% in 2021 (from 8.1%) and to 5.0% in 2022 (from 5.1%).
Japanese Industrial Production strengthened 1.8% m/m, compared to +1.1% m/m prior.
Yesterday, OPEC maintained its 2021 and 2022 world oil demand outlook, while raising it for Q1 2022.
Main Asia-Pacific stock markets were mostly downbeat, the US Dollar and the JPY Index attracted flows, whereas main Commodity Currencies (AUD, NZD, CAD) retreat against the greenback.
EUR/USD is soft below 1.1300, following yesterday's decline.
GBP/USD extends Monday's losses, testing 1.3200.
USD/JPY shows indecision around 113.50.
USD/CAD enters its 4th straight profitable day, surpassing 1.2800.
AUD/USD extends yesterday's losses and probes 0.7100.
NZD/USD is on the back foot and sets new 2021 low (0.6734).
GER30 is soft, but tries to hold 15,600.
USOIL is looking for directions around $71.00.
XAU/USD is mixed above 1,785.
Economic Calendar Picks (GMT)
UK Employment stats are due shortly (07:00), with investors then turning to Eurozone Industrial production (10:00) and US Producer price Index (13:30).
Overnight, focus shifts to China's Industrial Production and Retail Sales (02:00).
See the economic calendar here
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.