Risk alert movements related to Omicron have calmed down for the time being. Although the spread of infection continues, there are many reports that it is unlikely that the infection will become more severe. Also, there seems to be little concern about the effects of vaccination.
In the NY market the day before, US stocks closed with steady movement. Yields on 10-year US Treasury bonds are well above 1.50%. The VIX, which indicates market risk alertness, has fallen for three consecutive days, peaking at around 30 and falling below 20.
In the foreign exchange market, risk-aware dollar buying has stopped, and the dollar index has been declining for the second consecutive day. While the dollar-yen pair traded in the high 113-yen range, the euro-dollar pair rose from the high 1.12 range to the mid 1.13 range. There was a scene where the Euroyen was put on the 129 yen level from around 128 yen. At present, the movements of the weak dollar and the weak yen have been adjusted a little, but the situation is not widening risk alert.
With the awareness of events such as the US FOMC, British MPC, and ECB board next week, the market is in a situation where speculation is easy to fly. US monetary officials have withheld remarks during the blackout period, and the British, European and central banks seem to be cautious about monetary policy.
Risk alerts over Omicron have eased, but the USDJPY upside hasn’t grown as much as expected. The market moves in the headline, but it is still in the range trend.