Japanese Yen outperformed in overnight forex markets as stocks slumped in Asian trade, offering support for the anti-risk currency. The Yen deterioration in investors’ mood began to gain momentum after a speech by Bank of Japan Governor Haruhiko Kuroda.
The central bank of Japan head said pushing the interest rate on excess reserves deeper into negative territory will be the main tool to increase easing under the BOJ’s new policy regime. The Forex markets have been skeptical of the approach since it was introduced earlier in the year.
News out of Germany compounded risk-off dynamics. Chancellor Angela Merkel ruled out state assistance for Deutsche Bank and refused to lobby on the lender’s behalf with US regulators ahead of elections in 2017, according to a report from Focus magazine.
US Justice Department may seek as much as $14 billion in sanctions linked the involvement of Deutsche’s MBS arm in the US mortgage crisis that triggered the Great Recession in 2008.
Interestingly, the British Pound suffered outsized losses alongside the typically sentiment-geared Australian, Canadian and New Zealand Dollars as European shares followed Asian bourses downward.
A number of Brexit-related headlines emerged in forex markets over the weekend which may have contributed to a broadly toxic environment and pulled Sterling into risk on/off dynamics. Perhaps most notably, a survey from KPMG said three-quarters of large companies now plan to relocate some or all UK-based operations.
Looking ahead, a steep slump in S&P 500 futures ahead of the opening bell on Wall Street hints the dour mood aims to carry forward. Negativity may be compounded if the day’s Fed-speak mimics the hawkish posture of Chair Yellen, who all but promised tightening in December.
References to Brexit’s negative knock-on effects on Eurozone growth in a speech from ECB President Draghi may also damage confidence.
Forex Markets Top Trade Idea For Today Forex marketstoday; in light of the EU referendum that is taking place today in the UK and consider…Jun 23 2016nigerianews.info
Yen Soars as Sentiment Deteriorates Across Forex Markets Japanese Yen outperformed in overnight forex markets as stocks slumped in Asian trade, offering s…Sep 26 2016nigerianews.info