Worries about Omicron remains a main theme in the markets. Nikkei takes a dive after Japan announced to close its borders to all foreigners as Prime Minister Fumio Kishida said he’s taking measures with a “strong sense of crisis”. The forex markets are relatively quiet for now, with Yen and Swiss Franc digesting some of last week’s gains. Commodity currencies are also recovering slightly. But overall, the range in currency pairs is tight.

Technically, the rallies in Swiss Franc and Yen are just taking a breather and we’d expect them to resume sooner or later. The question for the week is whether risk-off sentiment would boost Dollar or Euro more. EUR/USD’s weak recovery from 1.1185 doesn’t warrant a stronger rebound yet. But break of 1.1373 minor resistance will indicate that the tide has turned for the near ter
In Asia, at the time of writing, Nikkei is down -1.78%. Hong Kong HSI is down -1.22%. China Shanghai SSE is down -0.52%. Singapore Strait Times is down -1.17%. Japan 10-year JGB yield is down -0.0074 at 0.070.

Source: www.actionforex.com