EUR/CHF Slips to a 6-Year Low, Global Markets Waver Over Omicron
EUR/CHF pair slides to a 6-year low as investors flock to the Swiss franc. Global markets waver as Omicron threat persists.
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Principal Points
- EUR/CHF slides to a 6-year low as traders flock to the Swiss franc in search of a haven
- Global markets endure a choppy trading session as Omicron fears weigh on sentiment
What’s Moving in the Markets?
The EUR/CHF pair has slipped to a six-year low as traders are seeking safety in the Swiss franc. The currency of Switzerland is considered a safe haven in the forex market in times of distress and uncertainty.
On this note, the EUR/CHF declined due to the overwhelming buying momentum in the Swiss franc. As a result, the pair slipped to levels near 1.04. In other words, the level marks a low last seen in mid-2015.
The exchange rate has been in a steady decline over the past several months. In more detail, since March this year, the euro has lost over 700 pips, or 6.7% against the stronger franc. To this note, some euro bulls are expecting a reversal as they prepare to buy into the pair.
What’s the Big Picture for Traders?
Meanwhile, returning Omicron fears weighed on market sentiment on Wednesday and early Thursday. More precisely, stocks on Wall Street dropped across the board yesterday after the first case of Omicron in the US was confirmed.
On that front, the Centers for Disease Control (CDC) announced there has been one Covid-19 case in California caused by the Omicron variant.
Following the news, major indexes reversed intraday gains and finished the day in the red. The Dow Jones, for example, erased more than 500 points and closed the day lower by 461 points. In addition, the Nasdaq Composite and the S&P500 declined 1.2%, and 1.8%, respectively.
Furthermore, recent comments from Federal Reserve Chairman Jerome Powell pose a challenge for traders. In his hearings before lawmakers over the past two days, Mr. Powell emphasized that inflation is most likely not transitory.
What’s Happening in Cryptocurrency Markets?
In cryptocurrency trading, major digital assets float fairly flat early Thursday. Bitcoin, the world’s leading token, is presently hovering near $56,000 to $57,000 per coin. On that note, the orange coin is about 18% away from its record high of $69,000 set Nov. 10.
Ether, on the other hand, almost broke its current record of $4,860. More specifically, the Ethereum token pushed to a session high of $4,800 on Wednesday. In other words, less than 2% from its record high. Currently, Ether’s price is gravitating toward $4,700 per token.
Despite the recent pullback, analysts maintain their view crypto markets will continue moving higher. With a quickly growing rate of adoption, some are even calling for a new all-time high in the price of bitcoin still this year.
What to Watch in the Markets?
Traders and investors are shifting their attention to the US jobless claims report slated for today at 08:30 am EST. Tomorrow, market participants will be watching the latest jobs report.
In detail, the non-farm payrolls report, arriving Friday at 08:30 am EST, will reveal how many new jobs were created in the US for November. The news will most likely create sharp volatility in the financial markets as it is one of the leading economic indicators in the US.