Coronavirus variant reports hit a downturn during a period of low liquidity
The discovery report of the new coronavirus "Omicron variant" from South Africa triggered a turning point as the entire market shifted to a sharp decline.
In this article, we wrote with keywords such as “Dow average over 36,000 cannot be bought,” the dollar buying is “too pricing in rate hikes,” and “U.S. 10-year yield over 1.7 is difficult,” and that a long USD/JPY would be over at the moment it hit 115.5, but it was unforeseen that it would fall due to the coronavirus.
To speak practically, market consensus had run too far, too much dollar long by believing in rate hikes, and a counterpunch hit when one mindlessly shorted the euro and the yen, giving the impression of being in a situation where it would be fine just to go along with it.
Regardless of the trigger, I feel that the decline in exchange rates happened as it was bound to happen.
Today's article intends to outline scenarios that could occur from now until the year-end.
