Yen, Franc Gains May Evaporate as Quickly as They Appeared

Talking Points:

  • Yen, Franc arise as commodity FX drops as marketplace view sours
  • Whipsaw sensitivity risk still high absent top-tier scheduled eventuality risk
  • Are FX markets relating a forecasts so distant in Q3? Find out here

The Japanese Yen and a Swiss Franc outperformed as view soured opposite financial markets in Asian trade, boosting standby anti-risk assets. Investors seemed to be spooked by a hazard of troops movement on a Korean peninsula following fiery comments US President Donald Trump.

Commodity confederation currencies are typically supportive to swings in marketplace mood and valid to be so against, with a Australian Dollar heading a approach reduce carrying been stung by disappointing consumer certainty data. The New Zealand Dollar hold adult best as traders demeanour forward to a RBNZ rate decision.

Looking ahead, another still day on a mercantile information front looks expected to keep risk trends during a forefront. European shares have picked adult on a disastrous lead entrance out of Asia and SP 500 futures are indicating decidedly lower, arguing for continued risk hatred when Wall Street comes online.

On balance, this points to delay of overnight trends. However, only as yesterday’s deficiency of top-tier news upsurge non-stop a doorway for today’s headline-inspired sensitivity (as suspected), so too a peace currently might pave a approach for a quick annulment if cooler heads seem to be prevailing.

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Asia Session

Yen, Franc Gains May Evaporate as Quickly as They Appeared

European Session

No data.

** All times listed in GMT. See a full DailyFX mercantile calendar here.

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

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