Yen May Extend Gains as Market Sentiment Sours

Talking Points:

  • Yen outperformed amid risk hatred in Asian trade
  • SP 500 futures spirit some-more of a same is due ahead
  • Euro indifferent after as-expected German GDP data

The Japanese Yen outperformed in differently still Asian trade as bonds declined, boosting direct for a perennially anti-risk currency. The New Zealand Dollar valid weakest on a session. Prices fell with internal bond yields, hinting a pierce was delay of RBNZ-inspired momentum.

The Euro was understandably unmoved after first-quarter German GDP total crossed a wires. Not usually did a numbers register precisely in line with expectations, though their singular implications for near-term ECB financial process trends substantially meant that they were always going to tumble on deaf ears.

From here, a clearly manly charity of US mercantile data seems doubtful to enthuse most activity. CPI, sell sales and consumer certainty numbers are all due to cranky a wires though with a luck of a Jun Fed rate travel already labelled in during 100 percent, their impact might be minimal.

This creates an opening for view trends to sojourn during a forefront. SP 500 futures are looking increasingly disastrous in early European hours, hinting during a risk-off disposition once Wall Street comes online. That suggests a Yen is expected to sojourn on a descent into a week-end.

Rhetoric rising from a persisting assembly of G7 financial ministers in Bari, Italy might erode certainty further. While a troublesome emanate of general trade is off a agenda, sideline explanation underscoring slow deadlock between US officials and their counterparts might green investors’ mood.

Retail traders are betting on a stronger Yen. Find out here what that hints about a cost trend!

Asia Session

Yen May Extend Gains as Market Sentiment Sours

European Session

Yen May Extend Gains as Market Sentiment Sours

** 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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