Japanese Yen Gains as Markets Start the Week in a Sour Mood
- Yen gains as sentiment sours at the start of the trading week
- S&P 500 index futures point to continued risk aversion ahead
- US political volatility a threat amid NAFTA renegotiation
The Japanese Yen edged up in otherwise quiet Asia Pacific trade. The perennially anti-risk currency edged higher, seemingly looking past a mixed performance across regional bourses to focus on negative cues displayed in S&P 500 futures.
Price action across the rest of the G10 FX space was conspicuously listless. A market holiday in the UK and slim pickings on the economic data docket seem likely to make for continued quiet, although the Yen might extend its advance if risk aversion gains further momentum.
Political risk remains an important wild card however. Officials from the US, Canada and Mexico are due to begin the second round of renegotiating the NAFTA free trade this week. President Donald Trump has disparaged the effort previously, stoking volatility. More of the same may yet be on offer.
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** All times listed in GMT. See the full DailyFX economic calendar here.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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