Yen Extends Gains, Spot FX May Offer Clues on Post-Holiday Moves
- Japanese Yen continues to rise in thin, pre-holiday trade
- Key European bourses to stay shuttered through Monday
- OTC spot FX may foreshadow post-lull moves elsewhere
The Japanese Yen rose in otherwise quiet Asia Pacific trade. The move built upon gains in the prior session, which took the currency higher against all of its G10 FX counterparts. Absent a clear-cut catalyst, the move may reflect markets on auto-pilot as liquidity thins into Good Friday holiday closures.
European bourses will remain shuttered into the weekend and key exchanges in Germany, France, Italy and the UK will remain offline Monday. That means participation levels will remain well below normal levels until Tuesday, undermining directional conviction in the interim.
Still, over-the-counter spot FX may offer something of a clue as to how benchmark assets may react when liquidity rebuilds if stray headline risk emerges during the lull. With that in mind, traders might be wise to keep an eye on price action telegraphing follow-on volatility elsewhere.
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Asia Pacific Trading Session
European Trading Session
** All times listed in GMT. See the full economic calendar here.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.