Japanese Yen Outperforms, GBPUSD Continues to Sell-Off - US Market Open
JPY / CHF: Flight to quality flow has been the notable theme throughout the European session with the safe-haven JPY and CHF benefiting from the pullback in equity markets ahead of the FOMC meeting. Overnight, the BoJ kept interest rates and forward guidance on hold, as widely expected. Consequently, USDJPY is back towards the mid-108s with the pair rejecting the 109.00 handle.
GBP: Sentiment in the Pound continues to deteriorate with GBPUSD hitting a fresh 2yr low, while GBPJPY breaks below flash crash lows. In turn, this has seen the FTSE 100 hit fresh 2019 highs. Elsewhere, on the option front, 3-month implied volatility continues to pick up as markets price in Brexit risks.
Source: DailyFX, Thomson Reuters
WHAT’S DRIVING MARKETS TODAY
- “FTSE 100 Analysis: Default Safe-Haven on No-Deal Brexit Risk as Sterling (GBP) Collapses” by Justin McQueen, Market Analyst
- “GBPUSD, EURGBP - Sterling Slumps as No-Deal Brexit Fears Intensify” by Nick Cawley, Market Analyst
- “DAX 30 & CAC 40 Charts: Eyeing Support Test on Further Weakness” byPaul Robinson, Currency Strategist
- “Using FX To Effectively Trade Global Market Themes at IG” by Tyler Yell, CMT , Forex Trading Instructor
--- Written by Justin McQueen, Market Analyst
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