Omicron variant sparks flight to safety

“Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.” - Warren Buffett

 

 

HEADLINES

 

 

• Yen rallies, rand and Aussie stumble as new variant spurs flight to safety
• Canadian dollar weakens by most in three months as oil tumbles
• SNB following franc developments closely, stands ready to intervene - Maechler
• Gold pauses after safe haven rush sparked by new virus variant
• OPEC postponses technical meetings to evaluate Omicron impact
• Stocks tumble on new coronavirus variant fear
• Traders pile into defensive options plays as COVID-19 fears return

 

 

FOREX

 

 

Yen rallies, rand and Aussie stumble as new variant spurs flight to safety

 

The safe-haven yen rallied while the South African rand and risk-sensitive Australian dollar slumped on Friday, as investors ducked for cover following the discovery of a new coronavirus variant that could resist current vaccines.

 

Canadian dollar weakens by most in three months as oil tumbles

 

The Canadian dollar on Friday posted its biggest decline in more than three months against its U.S. counterpart as news of a new, possibly vaccine-resistant coronavirus variant spooked global financial markets. Global stocks and oil, one of Canada's major exports, tumbled as investors worried that the variant could dampen economic growth.

 

SNB following franc developments closely, stands ready to intervene - Maechler

 

The Swiss National Bank (SNB) is following the Swiss franc's exchange rate "very closely" to monitor its impact on the economy and remains ready to intervene when necessary, governing board Member Andrea Maechler told broadcaster RTS.

 

 

COMMODITIES

 

 

Gold pauses after safe haven rush sparked by new virus variant

 

Gold steadied on Friday, taking a breather after an over 1% rally sparked by a rush into safe-havens as concerns over a new coronavirus variant rattled risk appetite.

Authorities globally reacted with alarm to the virus variant, with the EU and Britain among those tightening border controls as researchers sought to establish if the mutation was vaccine-resistant, triggering a selloff across markets that seeped into oil and other precious metals.

 

OPEC postponses technical meetings to evaluate Omicron impact

 

OPEC and its allies have postponed technical meetings to later this week, giving themselves more time to assess the impact of the new Omicron coronavirus variant on oil demand and prices, according to OPEC+ sources and documents.

Oil prices crashed together with other financial markets on Friday by more than 10%, their largest one-day drop since April 2020, as the new variant spooked investors and added to concerns that a supply surplus could swell in the first quarter.

 

 

STOCKS

 

 

Stocks tumble on new coronavirus variant fear

 

U.S. stocks closed lower on Friday, with the Dow and S&P 500 suffering their biggest one-day percentage drops in months, and pandemic-hit sectors that had gained from a reopening falling sharply after a new coronavirus mutation was found. 

 

Traders pile into defensive options plays as COVID-19 fears return

 

Soaring volatility on Wall Street on concerns over a new coronavirus variant identified in South Africa sent investors scrambling into defensive options plays on Friday and boosted the Wall Street's most widely followed fear gauge to a more than two-month high.

The Cboe Volatility Index rose 8.37 points to 26.95, its highest since Sept. 20, as the S&P 500 index fell 1.9% with travel, bank and commodity-linked stocks bearing the brunt of the selloff triggered by the discovery of a new and possibly vaccine-resistant coronavirus variant.

 

 

CHART

 

 

WTI Crude Oil – Daily Candlesticks

Source: GKFX Prime Metatrader 4

WTI SPOT fell $10 on Friday to support near $67, should the decline continue - the next major support is near $61.50. - Prepared by Trading Writers*

 

CALENDAR

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

 

SOURCE

 

 

 

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/markets/europe/new-coronavirus-variant-fears-knock-2-off-dow-futures-2021-11-26/
https://www.reuters.com/markets/europe/gold-gains-concerns-over-new-coronavirus-variant-stifle-risk-appetite-2021-11-26/
https://www.reuters.com/markets/commodities/update-opec-postponses-technical-meetings-evaluate-omicron-impact-sources-2021-11-28/
https://www.reuters.com/markets/us/canadian-dollar-weakens-by-most-three-months-oil-tumbles-2021-11-26/
https://www.reuters.com/markets/rates-bonds/snb-following-franc-developments-closely-stands-ready-intervene-maechler-2021-11-27/
https://www.reuters.com/markets/us/yen-rallies-rand-aussie-stumble-new-variant-spurs-flight-safety-2021-11-26/