Resurging pandemic fears in China sparks risk-off mood

FX:GBPUSD   British Pound / U.S. Dollar

While the Chinese government had imposed stringent quarantine measures, there was an uptick in confirmed cases and the first covid-related death in months. Hopes for lifting those measures were silenced. The stock market then retreated, as the S&P 500 slipped 15 points (-0.39%) to 3,949, and the Nasdaq 100 fell 123 points (-1.06%) to 11,553. The Dow Jones Industrial Average fell 45 points (-0.13%) to 33,700.

The US dollar continued to rise thanks to its safe-haven appeal. EUR/USD slid to 1.0241, losing over 80 pips. GBP/USD traded lower at 1.1821, and AUD/USD dropped to a closing price of 0.6605. USD/CAD climbed to 1.3454, while USD/JPY surged to 142.09 by adding 172 pips.

WTI oil futures briefly plunged to a month-low of $75.35, after Saudi Arabia denied reports of increasing OPEC oil production quotas. It then rebounded to $80.04 a barrel. Spot gold declined to $1,737.84 an ounce. Bitcoin just dropped to 15,588 - the lowest in over two years.