Financial markets are avoiding risks and the dollar is weak, as concerns about the o-variant of the coronavirus increase and after a climate plan was voted down in the US.

The euro stood at 1,1259 and was thus worth a quarter of a percent more against the dollar.

The mood is clearly risk-off. Because of all the uncertainty, or in a large bowl with the money on the table, the growth outlook for the U.S. economy, down-updated in.

The omikron variant of the coronavirus is also a cause for concern. The Netherlands can count on international attention now that the country has declared another heavy lockdown, to slow down the rapid spread of this new variant. The British are also affected and the Americans are particularly vulnerable with a relatively low vaccination rate.

A level of 1.10 over six months, instead of 1.12 in EUR/USD is now likely. This has to do with the omikron variant, which will dominate the news in the first months of next year. In the second half of next year, the euro could rise again to 1.12.

Meanwhile, the market is also counting on three interest rate increases by the Federal Reserve in 2022.

The Turkish lira suffers from statements by President Recep Tayyip Erdogan, who has said that he wants to lower interest rates, but that inflation will also fall as soon as possible, ‘Allah willing’. The market does not respond positively to the religious undertones. The lira has been falling sharply for some time, as Erdogan is influencing the central bank to lower the high policy interest rates, although inflation is still very high in Turkey. Interest rates were lowered from 15% to 14% last week. The lira fell this year as 134 percent, causing prices for import goods and fuel in Turkey to rise sharply.

The British pound is weak, despite last week’s interest rate hike. This has to do with political unrest in the country, but also with the international situation, as agreements with the EU that were made after Brexit expire.