There is some potentially good news crossing the wires out of Israel that suggest the new variant of the coronavirus, named Omicron, that has otherwise distressed risk appetite of late.

Prof. Dror Mezorach, head of the coronavirus department at Hadassah University Hospital Ein Karem, said the preliminary reports on the clinical condition of people infected with the new variant are encouraging.

'' If it continues this way, this might be a relatively mild illness compared to the delta variant, and paradoxically, if it takes over, it will lead to lower infection rates,'' and it will be easier to deal with globally. 

Market implications

No news is good news at the start of the week, but this could see corrections continue into the European open as traders take profits on long volatility and risk-FX. AUD/JPY, the forex market's risk barometer, for instance, is already embarking on a test of the 38.2% Fibonacci level:

• AUD/JPY Price Analysis: Bulls testing a firm hourly resistance