ForexLive Asia-Pacific news wrap: Covid variant strikes fear into the market

Author: Adam Button | Category: News

Forex news for Asia-Pacific trading on November 26, 2021:

  • Gold up $9 to $1797
  • US 10-year yields down 8 bps to 1.560%
  • WTI crude oil down $2.04 to $76.35
  • Nikkei -2.9%
  • S&P 500 futures down 0.9%
  • ASX 200 closes down 1.7%
  • JPY leads, AUD lags
At the start of the session I wrote this:

Holiday-thinned markets are more of an opportunity for retail than not. The temptation is to tune out and that's fine -- rest is an important part of success -- but they're worth tuning in for because once in awhile there's news that's market moving and it's a rare time when retail can get ahead of the algos and larger players.
That certainly turned out to be true. When the bond market woke up with yields down around 4 bps across the curve, the FX market and others did as well.

From there it slowly turned into a frenzy. Even a sparking Australian retail sales report barely slowed the move in the Aussie, as AUD/USD took out the September low.

The euro and yen confirmed their status' as funders as both made gains. The yen though was way out in front as the market did a quick rethink on everything and particularly talk that the Fed will speed up the taper. US 2 year yields are on track for the largest one-day fall since March 2020.

This news hit into an already-dismal run for the commodity currencies and that could set up an ugly day. That said, details and data on the new variant are thin. The WHO and UK variant officials are hosting meetings/briefings on the new strain today and that's suddenly essential viewing, along with whatever news comes out of South Africa.
Forex news for Asia-Pacific trading on November 26, 2021:

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