However, aggressive intervention might be used several times each year in countries with a dirty float currency regime. Exchange markets had to be closed. JP Morgan have downgraded their view on Chinese stocks on their expectations for a worsening trade war Lucky there is forexlive to get everyone ahead of the game, been sounding the alarm bells on this since February when Mr Ross first opened his gob on trade restrictions and tariffs. Risk aversion is a kind of trading behavior exhibited by the foreign exchange market when a potentially adverse event happens which may affect market conditions. A minor data point though as this is survey data.
There are some light hints of risk off in Asian trading and that is helping somewhat to keep the yen bid but make no mistake, it's all about yields at the end of the day. The only supportive reason I can point to for the yen to stay bid against the dollar is if global equities threaten to collapse in the wake of higher yields - like what we saw in late January this year.
Right now, the pair is testing a key resistance level near There is further resistance at around There isn't going to be much on the agenda today in terms of key data so the next risk event for dollar and yields will be tomorrow's US jobs report. If buyers are able to crack higher above them, things can turn ugly real fast. For the pair, it's been mostly a yields story for September and that won't change with. Asset 24 View More. Trade ideas thread - European session 2 October Treasury yields set to steal market spotlight as it threatens to break out It's going to be all about the yields story in markets once again ForexLive year Treasury yields are up 2.
It was already much of the case in overnight trading that yields threatened to break out and we're seeing further evidence here in early trades to start the new day. If we're able to see a hold above 3. This will start prompting alarm bells like those seen in early January and will surely start to weigh on stocks. Should markets turn more risk off expect that to put further bids in the dollar. And with Treasury yields soaring to multi-year highs, expect that to further weigh on emerging markets and promote even more flows back into the dollar.
We're not seeing much of a reaction in currencies just yet but this is something that you have to keep an eye on. It's going to be all about the yields story in markets once again ForexLive year Treasury yields are up 2. It was that yields threatened to break out and we're seeing further evidence here in early trades to start the new day.
Economic data coming up in the European session A quiet day on the docket for European trading. That's the major story in trading so far and will surely exacerbate some concerns in equities and emerging markets. In turn, that will create a feedback loop and push the dollar higher as well.
All theoretical of course but that's the way it should play out. Hansson will be speaking on the outlook for Estonia he's the central bank governor there and the Eurozone. General view on construction activity in the German economy, which has been a bit soft in recent times. A minor data point though as this is survey data. Prior release can be found here. Not much of a market mover as the focus is on the jobs report to come tomorrow.
Also of note, we'll have Italy's finance minister Giovanni Tria speaking on the country's economic report presentation at GMT. That's all for the European session to come. I wish you all the best of days and good luck with your trading! A quiet day on the docket for European trading That's the major story in trading so far and will surely exacerbate some concerns in equities and emerging markets.
ForexLive Asia FX news wrap: In a nutshell, very hawkish: Rates are still accommodative Rates are a long way from neutral Rates will go past neutral If he had have asked, 'Am I being clear? Apart from Powell and Pence news and data was non impactful. Hawkish Powell, more USD bought https: In a nutshell, very hawkish:.
The Wall Street Journal has more detail, its a great read if you can access the gated story. I often try to transfer a few million out of my account whereupon the teller says something like: Export earnings were more resilient than expected At this stage, it appears that net exports are on track to be broadly neutral for growth in the September quarter. Responses to the Australian trade surplus data earlier Eamonn Sheridan.
A new approach to diplomacy might be needed. If that guy doesn't get confirmed for the Supreme Court maybe they could send him to China to smooth things over.
He could give Li a big pash or something? Some dates on the Italian budget to note in the diary Eamonn Sheridan. Australia trade balance for August: In the olden days if you said 'Deficit!
The other thing about olden days, when the trade deficit was announced each month the AUD would drop like a rock. Now we get surplii plural of surplus? Put that down to we all secretly love bad news. As I said earlier, the focus is on offshore developments, rising US rates and rising trade tensions, not domestic data.
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