The dollar lost some strength at the end of last week as markets expressed concerns about the impacts of the new Covid-19 variant on the Federal Reserve’s tapering plans. It is stronger this morning.
No cases of the new Omicron variant have been detected in the US yet, but future cases could hinder the country’s economic recovery. The CME Group’s FedWatch Tool has revealed that some investors are already sceptical of a Fed rate hike by June 2022.
Federal Reserve Chair Jerome Powell will speak later today, and markets will be listening for any comments around the timing of the rate hike.
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