Here is what you need to know on Friday, November 26:
The intense flight to safety on Friday is weighing heavily on risk-sensitive currencies and global stock indexes while allowing the greenback to find demand despite falling Treasury bond yields. Reports of the new coronavirus variant, which was detected in South Africa, showing immune evasion and possibly rendering current vaccines ineffective is forcing investors to seek refuge. The economic calendar won't be featuring any high-tier data releases and market participants will remain focused on risk perception ahead of the weekend.
Japan's Nikkei 225 Index is down nearly 3%, the UK's FTSE and Germany's DAX 30 both look to open around 2% lower than Thursday's closing levels. Moreover, US stocks futures, which will close early due to the Thanksgiving holiday, are down between 1.6% and 1.3% and the 10-year US Treasury bond yield is falling more than 5%.
EUR/USD registered modest gains on Thursday and continues to edge higher toward 1.1250 on Friday. The shared currency is also attracting demand as a safe haven.
AUD/USD and NZD/USD pairs are both down nearly 1% amid risk aversion. The barrel of West Texas Intermediate (WTI) is down more than 4% amid the worsening energy demand outlook and USD/CAD is trading at its strongest level since late September near 1.2750.
GBP/USD is struggling to gain traction and stays around 1.3300 in the early European session. The UK has announced that it has suspended flights to six African countries.
USD/JPY is posting large losses below mid-114.00s on Friday as the JPY continues to gather strength.
Gold is capitalizing on falling US Treasury bond yields and trading above $1,800 following the steep decline witnessed earlier in the week.
Cryptocurrencies: After rebounding toward $60,000, Bitcoin turned south on Friday and was last seen losing 3% on the day around $57,300. Ethereum, which gained 6% on Thursday, is trading in the negative territory below $4,500.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.