Will the new coronavirus variants trigger a risk-off sentiment?
02.12.2021
- U.S. Daily: Remarks by the President of the San Francisco Federal Reserve Bank
- U.S. – Barkin: Remarks by the President of the Richmond Federal Reserve Bank
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 briefly to 151.42 but subsequently fell back to 149.46. The key question for GBP/JPY will be whether it breaks below the low of 148.92 set on September 21 of this year.
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 layoff announcements at 9:30 p.m., U.S. initial jobless claims at 10:30 p.m., and remarks by Atlanta Fed President Bostic:remarks by Bostic, President of the Atlanta Fed; at 12:30 AM, U.S. weekly natural gas inventories; at 1:00 AM, remarks by Quarles, Vice Chair of the Federal Reserve; at 1:30 AM, remarks by Daly, President of the San Francisco Fed; and remarks by Barkin, President of the Richmond Fed. We will keep a close eye on currency strength while paying attention to the economic indicators and the content of these key figures’ remarks.
Author: Keisuke Sakurai
