Yen at Risk as Stocks Rise, Aussie Dollar Down on Local Politics

By Ilya Spivak of DailyFx

Forex Trading News & Analysis • Oct 22, 2018 at 4:26 AM EDT

Japanese Yen at risk as stock index futures point to risk-on sentiment.

Major currencies started the trading week in a consolidative mood, with a bare-bones economic calendar seemingly leaving markets rudderless. The Canadian Dollar edged narrowly higher, retracing after Friday’s steep decline on the back of disappointing CPI data.

Meanwhile, the Australian Dollar fell and the local ASX 200 equity benchmark gapped lower amid worries about political instability. A loss of former Prime Minister Malcolm Turnbull’s seat to an independent candidate in a weekend election means the ruling Liberals have lost their majority in Parliament.

YEN MAY FALL AS MARKETS START WEEK IN A CHIPPER MOOD

Looking ahead, a sparse offering of scheduled event risk seems likely to keep sentiment trends at the forefront. Bellwether European and US stock index futures are pointing convincingly higher, hinting at an upbeat bias. That probably spells trouble for the perennially anti-risk Japanese Yen.

ASIA PACIFIC TRADING SESSION

Asia Pacific Trading Session Economic Calendar

EUROPEAN TRADING SESSION

European Trading Session Economic Calendar

** All times listed in GMT. See the full economic calendar here.

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** All times listed in GMT. See the full DailyFX economic calendar here.

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