Forex news for Asia trading on
29 November 2021
The focus was on the
ramifications of the new Omicron variant of COVID-19 that sent risk
into a tailspin on Friday in holiday-thinned trading. The kneejerk
sell response was retraced somewhat during the session here. Yen
crosses, looked to as a risk barometer, generally gained while
overnight US equity index futures posted solid rises,
weekend developments on the new variant were, in a nutshell, it
appears to not cause such severe illness as the Delta variant but may
be more transmissible. Of course, these are very early indications
and in no way definitive statements. Markets, however, move on
speculation, not waiting until all the t’s are crossed and the I’s
even more bullish interpretation is also gaining ground. That is, if:
Omicron virus causes mild symptoms only,
i.e. less severity
a very positive development (catching a less severe variant results
in lesser illness and then confers ‘immunity’. Note, I’m not a
doc so please forgive my oversimplification). This is the bullish
useful it is does remain to be seen.
I said, yen crosses were generally higher across the FX space today.
Also higher were Brent and WTI, US bond yields, and Bitcoin.