Despite aggressive intervention efforts by the US government on Monday, volatility remained relatively high as the CBOE’s VIX Index crept toward last Friday’s record high.
There’s little doubt investors remain fearful as indicated by the surge in the Japanese yen across the majors, the plunge in US stock markets (the S&P 500 fell over 9 percent), and rising demand for safe-havens like Treasuries and gold. In fact, the low-yielding yen rallied nearly 3 percent against the British pound and Euro while rocketing 7 percent higher versus the Australian dollar. It is clear that traders are staying clear of carry trades, and with investor sentiment unlikely to improve substantially anytime soon, my long-term bias remains bullish on the Japanese yen. Related Articles: Japanese Yen and US Dollar Rally as Dow Jones Falls Further, Yen Crosses to Continue Lower Check out Daily Fundamentals in its entirety for analysis and outlooks on the US dollar, euro, British pound, Japanese yen, and the commodity dollars.