Japan data - October retail sales +1.1% m/m (vs. prior 2.7%)

Retail sales data from Japan for October 2021

+1.1% m/m 

• expected -1.6% m/m, prior 2.7%

+0.9% y/y

• expected 1.1% y/y, prior -0.5% 

This set of data from Japan is not moving yen. Markets have eyes on the new coronavirus variant, Omicron. Friday saw a huge sell off in risk-related assets that has steadined as markets have opened in Asia this Monday morning. The health implications of the new variant, i.e. transmissibility and severity, will not become overly clear for a week or more. Having said this, early indications from its origin in Southern areas of Africa, are that its not going to be any more harmful than the Delta wave and existing vaccines will be effective. It may even encourage further take-up of vaccinations in those countries where hesitancy has spread virulently. 

For FX, 'risk' is being bolstered. AUD/JPY, for example, is up on the session. 

ps. Due to a near-term technical glitch I won't be posting updated charts for now. This tech challenge is in the process of being overcome though. 

November 29, 2021 at 11:51AM
Eamonn Sheridan
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