UK Imposes Fresh COVID Restrictions, BoC Turns Cautious

EU EQUITIES SLIDE ON NEW MEASURES IN THE UK, BOC APPEARS CONCERN ON OMICRON

The US dollar continued underperforming most of the other major currencies on Wednesday and during the Asian session Thursday. It gained only against GBP, CAD, and JPY in that order, while it lost ground versus AUD, NZD, EUR, and CHF.

GBP/AUD — TECHNICAL OUTLOOK

GBP/AUD has been in a free fall mode since December 3rd, when it hit resistance at 1.8915. Today, the pair dropped below the 1.8425 hurdle, marked by the inside swing highs of November 3rd and 10th, and with no signs of the fall slowing down anytime soon, we see the case for the bears to stay in charge for a while more.

AUD/CAD — TECHNICAL OUTLOOK

AUD/CAD traded sharply higher on Wednesday, and today, it managed to briefly overcome the downside resistance line taken from the high of November 2nd. In our view, this suggests that some further advances may be looming for the near future.

AS FOR TODAY’S EVENTS

The only noteworthy release is the US initial jobless claims for last week, and expectations are for a small decline to 215k from 222k.

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