No stopping the yen

9 February, 2016

With no key distractions ahead of Yellen’s testimony tomorrow, markets are taking the path of least resistance. For equities, this still appears to be lower, with European equities down yesterday for the sixth consecutive session (looking at the Eurostoxx 50 index), with this being biggest down-move since the first trading day of 2016. The outlook for the global economy remains too uncertain, with the growth dynamics in the US also moderating, whilst the QE being undertaken by the ECB not seen as anything like sufficient to act as a counter-weight to these external forces. As we mentioned yesterday, for FX this has resulted in a change of direction. It’s not about the dollar and the impending rate increases from the Fed this year. After some wobbling, yesterday turned out to be about risk and more pointedly, risk aversion. This could be seen in the further strength seen in the yen, together with weakness in sterling. Having initially joined in the weakening against the dollar, the euro found some buyers in the European afternoon session, putting further weight onto the view that it’s more of a safe haven than funding currency in the current environment.

Fort today, we are seeing a steady to slightly firmer tone to equities at the start of the session, but the turn-around is currently tentative at best. The Japanese 10Y government bond is now displaying a negative yield for the first time ever, whilst the yen has seen a volatile session. USDJPY was initially lower, although some of this strength has been erased for the start of the European session. The data calendar is relatively light, with just UK trade data at 09:30 GMT, leaving markets at the back and call of wider sentiment and clinging onto the weak hope that Yellen may somehow offer some support at her testimony tomorrow.


Source link  
Trump pulls out of peace summit

The US President dominated headlines and moved the market again yesterday when he wrote a letter to the North Korean Leader announcing his decision...

UK Consumer Price Index data

Eurozone Markit Manufacturing PMI (May) is expected to come in at 56.0 from 56.2 previously. Markit Services PMI (May) is expected at 54.6 v 54.7 previously...

FOMC Members will be speaking today

This shows a healthy economy with the 2018 average at a higher level than previous years. Slip under zero can cause a market reaction but is not...


Fed Speakers Take Centre Stage

Fed Member Mester is due to speak at the Central Banking Series hosted jointly by the Global Interdependence Center and Bank of France, in Paris...

Markets Steady Ahead of Euro Open

After further increases in stock markets yesterday, the market is pausing and consolidating ahead of European trading. Asian equity markets are in the green...

Oil Inventories to Show a Draw

Expectations (Apr) are expected to be released with a prior reading of 16.7. This data has been weakening since a reading of 52.0 was recorded in...


Chances of RBA Rate Hike

NZDUSD bucked the trend overnight, as most other currencies managed to retrace some of their declines against the USD. The pair hit fresh...

Consumer Sentiment Index Close to Higher

US Fed Boston President Rosengren is due to deliver the keynote speech on the economic outlook, at the Greater Boston Chamber’s Economic Outlook Breakfast...

Chinese president soothes worries

With US Producer Prices data on the way this afternoon, and predicted to be largely as expected, the morning session will be dominated by central bankers...


In the past 24 hours Bitcoin has lost -1.78% and reached $7438.93. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.5154% and is now at $1.1712. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -14.99% and is now at $583.047. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets89%
2FXTMFXTM88%
3HYCMHYCM86%
4FIBO GroupFIBO Group81%
5FxProFxPro78%
6FXCMFXCM71%
7HotForexHotForex70%
8XMXM69%
9Alfa-ForexAlfa-Forex68%
10Grand CapitalGrand Capital65%
  


Share: