Will Cross-Yen Pairs Rebound as Omicron Variant Fears Ease?

Will Cross-Yen Pairs Rebound as Omicron Variant Fears 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, 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-period MA.

Today, at 16:00: France’s Consumer Price Index (flash estimate) and Q3 GDP (revised); at 17:00: Switzerland’s KOF Leading Index; at 17:55: Germany’s unemployment rate; at 19:00: 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 23:45, U.S. Consumer Confidence Index at 24:00, U.S. Federal Reserve Chair Powell’s Congressional Testimony, U.S. Treasury Secretary Yellen’s Congressional Testimony, and U.S. Federal Reserve Chair Clarida’s Congressional Testimony at 27:00 are scheduled.As today marks the last day of November, we intend to carefully monitor the market to see which direction prices will move.