The models are broken
The market is trying to get back to the pre-Covid and pre-war times, but that model is broken. A new dawn is here and the financial world needs to adapt.
Steen Jakobsen,
Chief Investment Officer
Head of FX Strategy
Summary: Today saw a further shift from JPY strength to JPY weakness, once again showing that the yen can only thrive when the pressure on risk sentiment is particularly intense. Elsewhere, the AUD is in the dumps as traders price in a June RBA cut and its commodity dollar counterpart CAD is riding high.