Yen holds firm ahead of European markets open


Markets are in a bit of a cautious mood to start the day

WCRS 16-05

Japanese stocks are weighed lower alongside weaker US equity futures and Treasury yields, so that is lending a helping hand to the yen as the currency remains underpinned as we begin the session in Europe.

USD/JPY holds slightly lower at 109.47 currently but had hit lows of 109.34 during Asia Pacific trading earlier today. The more cautious mood is also seeing the aussie and kiwi lag behind, though the former is off the lows after having seen somewhat sluggish inflation survey data and labour market data in the earlier session.

The rest of the major currencies bloc remain more subdued as changes against the dollar are kept below 0.1%. EUR/USD is only seen trading in a 9 pips range so far while GBP/USD is holding in a 12 pips range so that pretty much tells you the whole story.

Looking ahead, markets are still trying to find its footing as US-China trade tensions continue to cast a big shadow over the trading landscape but slowly and surely, the focus will turn towards other things so let’s see how things develop over the next session for now.

I reckon markets would like a brief period of calm before turning up for the next fight between greed and fear again. With little else on the economic calendar of note for the rest of the week, that will eventually be the primary focus in my view.

Source link