Should investors be wary of European currencies amid concerns over the spread of the Omicron variant?

Should investors be wary of European currencies amid concerns over the spread of the Omicron variant?

10.12.2021

Yesterday, two of the three major U.S. stock indices fell, and the market closed amid a risk-off sentiment characterized by falling stock prices, lower interest rates, and declining oil prices. Concerns spread that similar measures might be implemented across Europe after the British government announced it would tighten restrictions in response to the spread of the Omicron variant of the novel coronavirus.

In the foreign exchange market, the euro, which had been rising, has fallen; the EUR/JPY pair has completely erased the gains it made the day before yesterday and is currently trading around 128.21. The EUR/JPY pair has pulled back as its upside is capped by the 20-day moving average on the daily chart, and since it has formed a double top on the weekly chart, we need to closely monitor whether the downtrend will continue.

Today, at 4:00 PM: UK GDP, UK Industrial Production, UK Trade Balance,German CPI and Turkish unemployment rate at 4:00 PM; remarks by ECB President Lagarde and Bundesbank President Weidmann at 6:05 PM; U.S. CPI and Canadian Q3 capacity utilization at 10:30 PM; the University of Michigan Consumer Sentiment Index (flash estimate) at midnight; and the U.S. budget balance at 4:00 AM.With stock prices falling, we will closely monitor how the currency markets perform over the weekend.

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