Yen Falls as Euro, Pound Rise Amid Lull in Brexit-Linked Anxiety

2016-06-17 06:23:00

Talking Points:

Yen falls while Aussie, Canadian Dollars rise as risk appetite recovers
Euro, Pound rise with stocks amid correction in “Brexit”-driven moves
Consolidative dynamics set to prevail into the end of the trading week

The Japanese Yen underperformed in overnight trade as regional stocks recovered, sapping demand for the anti-risk currency. The sentiment-linked Australian and Canadian Dollars followed shares upward. The New Zealand Dollar lagged the rest of the commodity FX bloc, with prices in corrective mode after yesterday’s surge in the wake of first-quarter GDP data. The Euro and British Pound likewise followed shares upward, underscoring the centrality of "Brexit" fears as the catalyst driving recent risk aversion.

Looking ahead, a quiet economic calendar through the end of the week and the suspension of UK referendum campaigning until next week seems likely to leave markets in correction mode. European and US stock index futures are pointing higher in late overnight trade, hinting that overnight trading patterns may continue as amid profit-taking and pre-positioning for next week’s fireworks. Indeed, the average 1-week implied volatility for the US Dollar against its top counterparts is at the highest since November 2008.

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Asia Session

GMT	CCY	EVENT	ACT	EXP	PREV
22:00	NZD	ANZ Job Advertisements (MoM) (MAY)	0.2%	-	1.8%
22:30	NZD	BusinessNZ Manufacturing PMI (MAY)	57.1	-	56.6
01:00	NZD	ANZ Consumer Confidence Index (JUN)	118.9	-	116.2
01:00	NZD	ANZ Consumer Confidence (MoM) (JUN)	2.3%	-	-3.2%

European Session

GMT	CCY	EVENT	EXP	PREV	IMPACT
08:00	EUR	Eurozone Current Account SA (APR)	-	27.3b	Low
08:00	EUR	Eurozone Current Account NSA (APR)	-	32.3b	Low
09:00	EUR	Eurozone Labour Costs (YoY) (1Q)	-	1.3%	Low
11:45	EUR	ECB’s Coeure Speaks in Berlin	-	27.3b	Low