Will Cross-Yen Pairs Rebound as Concerns Over the Omicron Variant Ease?

Will Cross-Yen Pairs 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]—a variant of the novel coronavirus—subsided.The yield on the 10-year U.S. Treasury note is hovering around 1.52%.

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

Today, at 4:00 p.m., France’s Consumer Price Index (flash estimate) and Q3 GDP (revised figure) will be released; at 5:00 p.m., Switzerland’s KOF Leading Index; at 5:55 p.m., Germany’s unemployment rate; at 7:00 p.m., the Eurozone’s Consumer Price Index (flash estimate);at 10:00 p.m., remarks by a member of the Bank of England’s Monetary Policy Committee (MPC); at 10:30 p.m., Canada’s GDP; at 11:00 p.m., the U.S. S&P Case-Shiller Home Price Index;U.S. Chicago Purchasing Managers’ Index at 11:45 p.m., U.S. Consumer Confidence Index at midnight, Testimony by Fed Chair Powell before Congress, Testimony by Treasury Secretary Yellen before Congress, and Testimony by Fed Chair Clarida before Congress at 3:00 a.m.As today marks the last day of November, we intend to carefully monitor the market to see which direction prices will move.