Yen May Continue Higher as Apple Revenue Cut Roils Markets
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TALKING POINTS – YEN, AUSTRALIAN DOLLAR, APPLE, STOCKS, POUND, BREXIT
- Yen soars, Aussie Dollar falls as Apple Inc revenue cut sours sentiment
- British Pound down as UK companies prepare for “disruptive” Brexit
- S&P 500 futures suggest the risk-off mood likely to find follow-through
The anti-risk Japanese Yen soared in Asia Pacific trade after Apple Inc slashed first-quarter revenue figures. Similarly-minded Swiss Franc and US Dollar also rose while the Australian Dollar led sentiment-geared FX downward. Apple CEO Tim Cook cited an unexpectedly severe growth slowdown in emerging markets and hinted at the US-China trade war as a leading culprit behind the revenue downgrade.
The British Pound declined, building on the prior day’s heavy selling. That drop came amid concerns about the looming threat of a “no-deal” Brexit. That followed manufacturing PMI data showing inventories surged last month. The closely-watched survey from Markit Economics chalked up the build in stockpiles to companies stepping up preparations for a “potentially disruptive” UK exit from the European Union.
YEN MAY EXTEND GAINS AS MARKET MOOD SOURS
Looking ahead, a lackluster offering on the European data docket seems likely to keep risk appetite trends at the forefront. Bellwether S&P 500 futures are pointing convincingly lower, hinting that trading patterns prevailing in APAC hours are likely to find follow-through as the tone across global markets remains defensive. A soft manufacturing ISM survey may amplify the dour mood.
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ASIA PACIFIC TRADING SESSION
EUROPEAN TRADING SESSION
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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.