Is the Market Turning Risk-Averse Due to the New Coronavirus Variant?
02.12.2021
- U.S. Daily: Remarks by the President of the San Francisco Federal Reserve Bank
- U.S. - Birkin: Remarks by the President of the Richmond Fed
Yesterday, in the U.S. market, the three major stock indices all fell toward the close, creating a risk-off sentiment characterized by falling stock prices, lower interest rates, and lower crude 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 COVID-19 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 trading session.GBP/JPY rose briefly to 151.42 but then reversed course and 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 16:30, the Eurozone Producer Price Index and unemployment rate at 19:00, U.S. Challenger layoff announcements at 21:30, U.S. initial jobless claims at 22:30, and remarks by U.S. Federal Reserve Bank of Atlanta President Bostic:Atlanta Fed President’s remarks, at 12:30 a.m. U.S. weekly natural gas inventories, at 1:00 a.m. U.S. remarks by Fed Vice Chair Quarles, and at 1:30 a.m. U.S. remarks by Daily:Remarks by San Francisco Fed President Daily, and U.S. Richmond Fed President Barkin’s remarks are scheduled. We will closely monitor currency strength and weakness while paying attention to the economic data releases and the content of these key figures’ remarks.
Author: Keisuke Sakurai
