Will the new coronavirus variants trigger a risk-off sentiment?

Will the new coronavirus variants trigger a risk-off sentiment?

02.12.2021

Yesterday, the three major U.S. stock indices all fell toward the close, creating a risk-off sentiment characterized by falling stock prices, lower interest rates, and declining oil prices. Although the U.S. ISM Manufacturing Index for November, released yesterday, rose to 61.1 from 60.8 the previous month, stock prices fell following the first confirmed case of a new coronavirus variant in the United States.

The foreign exchange market is once again shifting toward a yen-buying trend, and cross-yen pairs have been falling since yesterday’s European session. GBP/JPY rose as high as 151.42 but subsequently fell back to 149.46. Whether GBP/JPY breaks below the low of 148.92 set on September 21 of this year will be key.

Today’s schedule includes Swiss retail sales at 4:30 p.m., the Eurozone producer price index and unemployment rate at 7:00 p.m., U.S. Challenger job cuts at 9:30 p.m., U.S. initial jobless claims at 10:30 p.m., and remarks by Atlanta Fed President Bostic:Atlanta Fed President remarks, at 12:30 AM: U.S. weekly natural gas inventories, at 1:00 AM: U.S. Fed Vice Chair Quarles remarks, at 1:30 AM: U.S. San Francisco Fed President Daly remarks, and U.S. Richmond Fed President Barkin remarks are scheduled. We should pay close attention to the economic data releases and key officials’ remarks, while keeping a close eye on currency strength.

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