Yen, Franc and US Dollar Fall in Cheery Markets. Will This Last?


  • Yen, Franc, US Dollar fall as commodity currencies rise in risk-on trade
  • FTSE 100, SP 500 futures hint at upbeat mood through the week-end
  • Rebound in risk appetite unlikely to be lasting as marquee fears remain

Corrective flows defined G10 FX price action in Asia Pacific trading hours. The Japanese Yen, Swiss Franc and US Dollar – all beneficiaries of yesterday’s risk-off push – traded broadly lower. At the opposite end of the sentiment spectrum, the Australian, Canadian and New Zealand Dollars traded higher.

A lull in top-tier scheduled event risk seems to be allowing investors a bit of room to rebalance exposure ahead of the week-end. A sharp rebound in Chinese share prices probably helped. The benchmark CSI 300 index is on pace to add over 2 percent after hitting the lowest level in almost three years.

Sentiment trends are likely to remain at the forefront. Benchmark FTSE 100 and SP 500 index futures are pointing higher before the opening bell in London and New York, hinting that the risk-on bias aims to

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