FX Breakout Monitor: XAU outpaces also strong GBP and JPY
While sterling and yen are very strong on the day and the smaller G10 and EM currencies are on the defensive on an episode of weak risk sentiment and safe haven seeking in bonds, gold is quietly poking toward a breakout versus a strong US dollar and has etched new all-time highs today against a number of other major currencies.
FX Update: USD and JPY rise to top on negative sentiment shift.
Widening concerns that the Covid-19 virus outbreak will lead to a more sustained risk of economic disruption is feeding a fresh wave of risk aversion, as safe haven bonds in particular flash red even if the dip in sentiment elsewhere is far modest. The JPY is pulling to the head of the pack on the double whammy of lower yields and risk-off.