Yen in Focus as Sentiment Trends Drive Currency Market Action

Talking Points:

  • Yen moves competence take tip billing as risk trends expostulate cost action
  • Aussie Dollar drops as soothing sell sales information hurts RBA outlook
  • NZ Dollar declines as view sours in Asian trade session

It is another still day forward on a European and US mercantile information front. Meanwhile, a installed calendar of Fed explanation competence pass with small occurrence deliberation investors’ near-term process bets are clearly sealed in. The luck of a Jun rate travel pragmatic in Fed Funds futures is now 100 percent.

That leaves risk view trends to set a agenda. What this means is misleading however. SP 500 futures, a baseline for altogether risk appetite, are trade prosaic before a opening bell in Europe. Swings on this front competence be many clearly seen in a Yen. It competence tumble if traders are upbeat or arise if a mood sours.

The Australian Dollar underperformed in differently still Asian trade. The dump followed disappointing sell sales data and tracked a unemployment in internal bond yields, hinting a total desirous a dovish change in investors’ RBA process outlook. As it stands, investors are not pricing in a rate travel during slightest by 2017.

The New Zealand Dollar further declined. The sentiment-sensitive banking fell as many Asian bonds traded lower, indicating to risk hatred as a catalyst. The MSCI Asia Pacific informal equity benchmark index fell 0.3 percent. Follow-through competence be singular however as a RBNZ rate decision looms ahead.

Have a doubt about trade FX markets? Join a QA webinar and ask it live!

Asia Session

Yen in Focus as Sentiment Trends Drive Currency Market Action

European Session

Yen in Focus as Sentiment Trends Drive Currency Market Action

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

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

To accept Ilya’s research directly around email, greatfully SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

About author

Australia has 20 days’ petrol left

The International Energy Agency mandates that countries hold at least 90 days’ supply, but Fairfax reported on Monday that Australia has just 22 days of ...