The opening of the market in December is a turbulent development. In a US Congressional testimony yesterday, Fed Chairman Jerome Powell said it was appropriate to consider ending the quantitative easing contraction months ahead of schedule due to high inflationary pressures. He said it was time to stop expressing the traditional perception that rising inflation was temporary. The market was surprised that Chair Powell had turned to a hawk, and the reaction to buying dollars was intensifying.
On the other hand, there is a sense of caution about Omicron, and the market is confused. Chair Powell has sent a strong message to control inflation, but what about employment, which is part of the two missions? Today, the US ADP employment statistics for November will be released. The preliminary forecast is that the number of people will increase by 571,000, up from 525,000 in October last time. And on weekends, November US employment statistics will be released. The second half of this week is likely to be a complex development with a view to the three poles of Omicron, US inflation and employment.
Although the market was all about Omicron, the USD was repurchased due to the remarks of FRB Chairman Jerome Powell. However, Omicron has not disappeared yet, and USD buying may be limited due to anxiety.
Although I converted USDJPY to buy yesterday, the growth is not good. First of all, I would like to see what will happen after the US ADP employment statistics tonight.
Also, since the Oceanian currency is repulsive, I am thinking of trading to AUD and NZD.