Market Analysis

Тhe Japanese yen was up by almost 1.5% in relation against the US dollar

 

FOREX

The markets are reacting strongly to reports of a new coronavirus variant identified in Southern Africa. The consequent flight to safety is already benefiting safe haven currencies such as the yen and the Swiss franc. Traders are turning their backs to risk-related currencies during early Friday, with the Australian dollar and it’s New Zealand counterpart both hitting a 3-month low in relation to the US dollar. In contrast the the Japanese yen was up by almost 1.5% in relation against the US dollar. This could be a knee-jerk reaction to news that started circulating on Thursday, over the potential for this new virus strain to reverse the opening of the global economy. AT the same time, reduced liquidity, due to the Thanksgiving holiday, may have exacerbated the demand for refuge assets. As Friday trading unfolds throughout Europe and later the Americas, we will get more clarity on whether market sentiment really has turned to risk aversion.

 

Source: ActivTrader

 

OIL

Oil prices are falling on fears that a new variant of the coronavirus identified in Southern Africa could force the reintroduction of travel restrictions, reducing global fuel demand. The virus-related worries appear to be multiplying the effect of the recent release of large quantities of oil from the strategic reserves of the US and other consumer countries. This increase in supply and fears over future demand caused a drop of almost 4.5% in the price of Brent during the early Friday trading.

 

Source: ActivTrader

 

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