Risk trades breathe a little easier so far on the session

Calmer tones prevail after Friday’s rout

European indices are up 0.3% to 0.7% while S&P 500 futures are up 0.6% as risk trades are holding up so far on the day. The Omicron variant worries are still the main thing to watch out for but as mentioned earlier, essentially “no news is good news”.

We’ll only know in a few weeks how serious and potent this latest COVID-19 variant will be but for now, at least there isn’t any reported major breakouts yet even if the virus strain appears to have been circulating across the globe for some time already.

In the bond market, Treasuries are offered with 2-year yields climbing up 2.5 bps to 0.545% while 10-year yields are up 5.1 bps to 1.536%.

Again, a lot of these moves aren’t anything substantial as compared to Friday but at least things are calmer as we await the return of US traders from the Thanksgiving weekend.

In FX, the dollar is trading mixed as it keeps a light advance against the euro and yen but is seen lower against the loonie and aussie notably.

EUR/USD is down 0.3% to 1.1285 while USD/JPY is just up a touch from around 113.30 to 113.45 at the moment. USD/CAD is lower as the loonie benefits from a bounce in oil prices, as the pair pushes down from 1.2800 at the end of last week to 1.2730 levels.

Meanwhile, AUD/USD is trading near session highs, up a little over 0.4% to 0.7155 as buyers keep a defense of the August low of 0.7106 at least for now:

Invest in yourself. See our forex education hub.