Will the yen cross rates rebound as concerns over the Omicron variant ease?

Will the yen cross rates rebound as concerns over the Omicron variant ease?

30.11.2021

Yesterday, the three major U.S. stock indices all rebounded, resulting in a market environment characterized by rising stock prices, falling interest rates, and flat crude oil prices. A sense of relief spread through the stock market as concerns over the spread of the Omicron variant of the novel coronavirus subsided. The yield on the 10-year U.S. Treasury note is currently hovering around 1.52%.

In the foreign exchange market, the euro is trading slightly higher against the U.S. dollar, with the EUR/USD pair rebounding from 1.120 to 1.129. From a technical perspective, the EUR/USD pair is rebounding with support from the 20-period moving average (MA) on the 4-hour chart, so we need to carefully assess whether this rebound will continue along the 20-MA.

Today, at 4:00 PM, France’s Consumer Price Index (flash estimate) and Q3 GDP (revised); at 5:00 PM, Switzerland’s KOF Leading Index; at 5:55 PM, Germany’s unemployment rate; at 7:00 PM, the Eurozone’s Consumer Price Index (flash estimate); at 10:00 PM, remarks by a member of the Bank of England’s Monetary Policy Committee; at 10:30 PM, Canada’s GDP;at 11:00 PM, the U.S. S&P Case-Shiller Home Price Index; at 11:45 PM, the U.S. Chicago PMI; at 12:00 AM, the U.S. Consumer Confidence Index; testimony before Congress by Fed Chair Powell; testimony before Congress by Treasury Secretary Yellen; and at 3:00 AM, testimony before Congress by Fed Governor Clarida.As today marks the final day of November, we intend to carefully monitor market movements to see which direction they will take.