Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Yen Aims to Extend Gains as Market Sentiment Sours

Yen Aims to Extend Gains as Market Sentiment Sours

Ilya Spivak, Head Strategist, APAC

TALKING POINTS – YEN, ITALY, EURO, CHINA, AUSTRALIAN DOLLAR

  • Yen up, Aussie & NZ Dollars down as APAC markets rethink Italy
  • China hint at RRR cut fails to make a lasting dent in risk aversion
  • FTSE 100, S&P 500 futures hint sentiment is likely to sour further

Risk aversion returned with a vengeance in Asia Pacific trade as local bourses took stock of Europe’s response to ongoing in Italy. News that President Sergio Mattarella blocked the appointment of a eurosceptic to the Economy Ministry was celebrated until Europe came online Monday, with traders seemingly happy to see anti-EU populism checked.

That swiftly changed once Euro-area exchanges came online however. The spread between Italian 10-year bond yields and German equivalents – a measure of the extra risk in lending to Rome versus Berlin – jumped to the highest in over four years. The Euro plunged alongside the Euro Stoxx 50 equities benchmark, which shed a hefty 1.2 percent.

Today, APAC investors seem resigned to let Europe set the tone. Regional shares are down over 0.7 percent. A pause following reports in state-directed media that China is mulling a reserve requirement rate (RRR) cut to boost near-term liquidity proved fleeting. The anti-risk Japanese Yen is leading the way higher while the sentiment-linked Australian and New Zealand Dollars are on the defensive.

Looking ahead, a lull in big-splash event risk seems likely to keep broader risk appetite trends at the forefront. US consumer confidence data and a speech from St Louis Fed President James Bullard, a well-known dove, are unlikely to dislodge the status quo view on monetary policy. Futures tracking the FTSE 100 and S&P 500 equities benchmarks hint the risk-off mood will persist as London and New York come online.

See our free guide to learn how to use economic news in your trading strategy!

ASIA PACIFIC TRADING SESSION

Asia Pacific Trading Session Economic Calendar

EUROPEAN TRADING SESSION

European Trading Session Economic Calendar

** All times listed in GMT. See the full economic calendar here.

FX TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES