Will the risk-off sentiment caused by the Omicron variant persist?

Will the risk-off sentiment caused by the Omicron variant persist?

29.11.2021

Last weekend, the three major U.S. stock indices all fell, creating a risk-off sentiment characterized by falling stock prices, lower interest rates, and cheaper crude oil. The decline in WTI crude oil was particularly sharp, dropping about 7% to around $71.70. This was due to a downturn in the outlook for crude oil demand caused by growing concerns over the spread of the Omicron variant of the novel coronavirus.

In the foreign exchange market, while the Dollar Index fell slightly to 96.25, the EUR/USD pair rose by about 100 pips from 1.120 to 1.133. However, from a technical perspective, the pair has been capped by the 120-period moving average on the 4-hour chart and has since pulled back. Therefore, we should confirm the strength of the U.S. dollar and carefully assess whether this rebound will continue.

Today, at 4:00 PM, Turkey’s trade balance; at 6:30 PM, UK mortgage approvals; at 10:00 PM, Germany’s consumer price index (flash estimate); at 10:30 PM, Canada’s third-quarter current account balance; at 12:00 AM, U.S. pending home sales;at 12:30 AM: US Dallas Fed Manufacturing Activity Index, at 2:15 AM: Remarks by ECB President Lagarde, at 4:00 AM: Remarks by BOC Governor McClem, at 4:30 AM: Remarks by NY Fed President Williams, and at 4:35 AM: Remarks by Fed Chair Powell.We will carefully monitor how the market unfolds over the remaining two days of November.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed