Will the risk-off sentiment persist into the start of the week?

Will the risk-off sentiment persist into the start of the week?

06.12.2021

Last weekend, the three major U.S. stock indices all fell, and the market closed amid a risk-off sentiment characterized by falling stock prices, lower interest rates, and cheaper crude oil. The yield on the 10-year U.S. Treasury note has fallen below 1.4% to 1.35%.WTI crude oil briefly fell to $65.60 and is currently trading around $66.20. Gold rebounded slightly and is trading around $1,784.

The foreign exchange market opened without any significant gaps. Oceania currencies remain weak, and the AUD/USD pair has posted four consecutive bearish candles on the daily chart. However, since the pair is currently trading near the recent weekly low of 0.699, we need to carefully assess whether the decline will continue or if a rebound is likely.

Today’s economic calendar includes German manufacturing new orders at 4:00 PM, the UK construction PMI at 6:30 PM, and remarks by Bank of England Deputy Governor Broadbent at 8:30 PM. No major economic releases or key speeches are scheduled during U.S. trading hours.This week, the RBA policy rate is scheduled for Tuesday the 7th, the BOC policy rate for Wednesday the 8th, and the U.S. Consumer Price Index for Friday the 10th. Amid an overall risk-off sentiment, we will closely monitor how currency strength and weakness evolve.

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