Euro on track for biggest three-day rising streak of 2021



* Graphic: World FX rates Link

By Saikat Chatterjee

LONDON, Nov 30 (Reuters) - The euro surged on Tuesday and was on track for its biggest three-day rising streak this year, as traders cut their short positions on the single currency after Moderna's CEO said COVID-19 vaccines were unlikely to be as effective against the Omicron variant as they have been with other types.

Risk appetite took a battering across all markets for a second day in less than a week after his comments reinforced expectations that the global economy is set for a rocky and longer return to normalcy in the coming months.

That was most evident in the jump in the value of the euro on Tuesday as traders rushed to cut their large short bets on the U.S. Federal Reserve raising interest rates quicker than its global peers next year.

"This is Round 2 of Omicron jitters evident in the unwinding of short euro/long stock positions," said Kenneth Broux, an FX strategist at Societe Generale in London.

"There is an element of short euro covering as well and the unwinding of U.S. rate hike bets is also undermining the dollar."

Money markets pushed back their expectation of a first, full 25 basis-point rate hike to September 2022, versus July last week. IRPR

Against the U.S. dollar, the euro EUR=EBS rose 0.5% on Tuesday to $1.1367 and was up 1.3% in the last three sessions. At an intraday high of $1.1373 hit earlier, the single currency registered its biggest three-day rising streak since December 2020.

The Japanese yen =USD JPY=EBS climbed 0.6% versus the dollar to its highest levels since early October at 112.68 yen.

"Market participants’ fears over a more disruptive outcome for the global economy have been reinforced overnight by comments from Moderna Inc. CEO," Mizuho strategists said in client note.

Unwinding of popular carry trades in the currency markets was the theme in London trading, with the Aussie tanking 0.8% versus the Swiss currency AUDCHF=EBS while the franc CHF=EBS held within striking distance of a July 2015 low against the euro EURCHF=EBS .

"There is no world, I think, where (the effectiveness) is the same level . . . we had with (the) Delta (variant)," Moderna Chief Executive Stéphane Bancel told the Financial Times in an interview.

The Australian dollar AUD=D3 slid 0.65% to a new 12-month month low of $0.7093, and the New Zealand dollar NZD=D3 lost 0.6% to $0.6783 after the interview was published, heading for its worst month since May 2015.

Prior to Omicron's arrival, the main driver of currency moves was how traders perceived the different speeds at which global central banks would end pandemic-era stimulus and raise interest rates as they looked to combat rising inflation without choking off growth.

Cryptocurrencies also had a volatile trading session with ethereum ETH=BTSP bouncing more than 3% after spending most of early London trading in negative territory. Bitcoin BTC=BTSP steadied around the $58,000 levels.



World FX rates Link



Reporting by Saikat Chatterjee; Editing by Ed Osmond

Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.

Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.

Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.

Gumagamit kami ng cookies para mabigyan ka ng mahusay na karanasan sa aming website. Magbasa pa o palitan ang iyong cookie settings.

Babala sa Risk: Ang iyong kapital ay maaaring malugi. Ang mga produktong naka-leverage ay maaaring hindi para sa lahat. Tingnan ang aming Risk Disclosure.