Dollar ends lower following concerns from Omicron and US spending plan: December 21, 2021

The greenback ended the day lower against the majority of its peers on Monday in difficult trading conditions before the end of the year amid Omicron concerns and political issues in the United States.

Reuters reported that US Democratic Senator Joe Manchin said Monday that White House staff had done “inexcusable” things that led them to reject President Joe Biden’s social and climate policy plan. Manchin made the comments during an interview with West Virginia MetroNews radio station, after telling Fox News on Sunday that he could not vote for the nearly $ 2 trillion Build Back Better bill.

Against the Japanese yen, the dollar remained under pressure in Asia and fell to 113.35 at the European open. The pair briefly rebounded to 113.69 in Europe, however, the price encountered further selling there and fell to an intra-day low of 113.34 in New York following large-scale yen buying. before rebounding to 113.72 in tandem with US yields.

The single currency regained new buys to 1.1235 before the Asian opening and gained to 1.1277 in Europe following the weakness of the USD as well as euro cross buying especially against the British pound. The pair then rose to an intraday high at 1.1303 in the New York morning before falling to 1.1273 near the close.

The British Pound also remained under pressure in Asia and fell to an intra-day low of 1.3174 in the European morning due to the continued issues with the British Omicron as well as cross-selling of the British Pound, in particular. against the euro. The pair then erased its losses and hit session highs at 1.3244 at the New York open before retreating on profit taking.

In other Reuters news, Mario Centeno, a member of the European Central Bank’s Governing Council, warned on Monday that there was uncertainty about inflation that required constant monitoring, but added that new anti-lockdowns. COVID 19 in Europe is not expected to lead to price increases. He told reporters that the lockdowns and other consequences of the rising number of infections were worrying, but “should not lead to increased inflation, on the contrary.”

“We have to be careful,” he added.

Data to be released Tuesday:

New Zealand Westpac Consumer Survey, GDT Price Index, Germany Gfk Consumer Sentiment, UK PSNB, PSNCR, Swiss Trade Balance, Exports, Imports, Italy Industrial Sales, Producer Prices, US Current Account, Consumer Index Canadian New Home Prices, Retail Sales, US Red Book and EU Consumer Confidence.