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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.