Live on Bloomberg TV

00:00How sensitive will this market be to incoming economic data including payrolls Friday. Economic data is going to be hard to trade off at the moment just given like you said we're in this wait and see mode. With respect to Macron the early indications that came out over the weekend from the chair of the South African Medical Association definitely positive. But everybody acknowledging there's a lot further to go. And I think for the moment we're really focused on how markets are trading into here. And you know Tom you said earlier people have had a really good. Yes. iPhone. Part of the reason I think we've seen the pullback we've seen is people are just trying to lock in those gains rather than get too greedy into year end. Do you readjust for middle or late 2022. Is the sense as you have at RBC that all of your wonderful team recalibrate its. Look at this stage we're much more focused on the central banks that were about to hike and therefore may be put off by the uncertainty. You know to do an RB NZ if you will. And I put the Bank of England very much in that category versus other central banks that didn't have any kind of big tightening decisions in the very near term future. And I think by the time you get to the back half of 2022 things will look very different how they do today. I was sort of surprised also lingo. So lack of a dollar retreat in the macro on news of Friday and to recalibrate with euro 112 89. Can you call a weaker euro. Look I think the euro call will very much depend on on your macro and outlook. Typically euro dollar has been trading in line with equities for most of this year. So that's to say when equities were rallying your dollar tended to be higher and vice versa. We saw a break in that on Friday and I am really glad that's what we saw as it makes perfect sense to me. You know with the ECB very much back of the queue lockdowns and the impact of Covid already having the euro in recent days it makes sense that should rotate to the dollar. I still have a call for euro dollar lower into next year. I've had that call since the start of the year. Not change that now but that's very much based on the cyclicals strength of the US versus the euro area. And omicron doesn't change that for me at the moment.

No schedule data available.

Omicron Doesn’t Change Lower Euro-Dollar Call for RBC’s Lignos

Elsa Lignos, global head of FX strategy at RBC, says the currency market is in “wait-and-see mode” on the omicron variant and offers her euro-dollar outlook on “Bloomberg Surveillance.”

More From Bloomberg Surveillance
All episodes and clips

Bloomberg Technology
The only daily news program focused exclusively on technology, innovation and the future of business from San Francisco. Hosted by Emily Chang.
More episodes and clips