FX Update: Currency traders largely sitting on their hands as risky assets gyrate
We are seeing a bit of USD weakness in EURUSD and USDJPY, the latter of which has failed to reverse through the key 110.00 area, but outside of EM currencies, FX trading ranges remain rather muted relative the sudden injection of negative momentum in equities and other risky assets. Trump will look to make a splash in coming days now that he is back in Washington.
FX Update: Eyeing USDJPY status as FX too quiet
Today we are seeing a full-bore risk off move that is washing over the currency market along the lines of punishing the less liquid and more pro-cyclical currencies and rewarding the US dollar and the Japanese yen. The status of the yen is particularly interesting as we look at whether the JPY spike lower last week was an aberration or a regime change for the currency.
FX Breakout Monitor: EM and gold moving the most
G10 FX moves remain very muted in response to the latest negative risk sentiment on coronavirus fallout fears, while EM and gold are showing the highest beta to carnage in risky assets to open the week. The Japanese yen is gyrating wildly back to strength after pronounced weakness last week.