The price action in the forex market continues to underscore the positive mood.
Bulls are quoting Richard Friedland, chief executive officer of Netcare, which operates the largest private health-care network in South Africa who noted that in previous waves there had already been a high number of hospital admissions.
“I actually think there is a silver lining here and this may signal the
end of Covid-19, with it attenuating itself to such an extent that it’s
highly contagious, but doesn’t cause severe disease. That’s what
happened with Spanish flu.”
We’re all hoping that’s exactly what happens. At the same time, investing is about managing risk and there’s a growing risk that this variant will sweep through the entire globe, including China where lockdowns could put back-breaking strain on the global supply chain.
We got a taste of the fear late last week as the ‘buy the dips’ mentality in stocks turned into ‘sell the rips’ and we touched a seven-week low Friday. That same sentiment dragged AUD to the lows of the year but there’s at least a bit of optimism right now with AUD/JPY up 24 pips to 79.24.
There’s a long climb to get back to the October highs but there’s some support to work with.