Trade War Fears May Weaken Nikkei 225, USD/JPY Eyes 2016 Support

Asia Pacific Market Open – Trade War Fears, Euro, Italian Budget, USD/JPY, Nikkei 225

  • Anti-risk Japanese Yen gained ground as market remained in a sour mood as anticipated
  • Euro fell on Italy budget concerns, AUD NZD recover amidst SP 500 paring losses
  • USD/JPY prices descend under key rising support, eyeing trend line from March 2016 next

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The anti-risk Japanese Yen gained broadly against its major counterparts to start the beginning of this week as expected, boosted amidst further declines in global benchmark stock indexes. Losses picked up pace as European markets came online and Italian 10-year government bond yields soared to their highest since 2014.

Concerns seemed to have stemmed from Italy as EU Commissioners noted a ‘significant deviation’ of budget targets, referencing the 2.4% deficit proposed by the anti-establishment parties. The DAX and Euro Stoxx 50 finished the day 1.36% and 1.07% lower. This also boded ill for the Euro which underperformed after a couple of days of correction.

While Wall Street edged cautiously

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2018/10/09/Trade-War-Fears-May-Weaken-Nikkei-225-USDJPY-Eyes-2016-Support.html