The tone at the start in Asian markets was not good as the yen rallied and oil fell.
The JPY performs best in the first few hours of trading, rising up to 25 pips against the NZD and GBP. The yen’s gains continued after a poor review of Japanese GDP in the third quarter and strong Japanese trade data.
I suspect the market is grappling with sentiment around omicron. Concrete data remains limited and conclusions on impact impossible. The dominant thought is that it looks less severe than the Delta, but that could change as it spreads. Today’s data from South Africa also showed a slowing rate of infection.
A sign of the good news is that Americans are rushing to get vaccinated and it likely will be everywhere. Ultimately, this is what will bring life back to normal.
For now, we’ll continue to see ebb and flow around omicron sentiment and headlines.
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