EUR/USD remains weighed by covid Omicron variant risks

EUR/USD bears dominating as the US dollar catches a risk-off bid. EU worried to be the epicentre of the new covid variant spread. EUR/USD is weighed down by the prospects of the EU becoming the epicentre of the new covid variant, Omicron. At the time of writing, EUR/USD is trading at 1.1277 and between a low of 1.1273 and 1.1286, virtually flat on the day in comparison to the start of the week’s range. 

Following its discovery at the end of November, there have now been at least 6,430 confirmed cases of the variant detected in 70 countries, according to the European Centre for Disease Prevention and Control (ECDC). The variant is said to be becoming dominant in Europe.European countries were among the first to report cases but the variant has yet to be detected everywhere on the continent.

Meanwhile, the new variant fears weighed on risk sentiment on Monday and the FTSE 100 closed down 0.73% at 654. S&P 500 fell a similar margin, ending down 0.9% to 4,668.97. The Nasdaq Composite dropped 1.4% to 15,413.28 and the Dow Jones Industrial Average was 0.9% lower at 35,650.95. The 10-year US Treasury yield also fell 8 basis points to 1.41% while the two-year Treasury yields fell 3 basis points to 0.63%. EUR/USD trimmed losses to about 25 pips, at 1.1290Hi

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