The Japanese Yen edged lower in otherwise quiet overnight trade as Japan’s benchmark Nikkei 225 stock index rose after gapping down at Friday’s trading open. That put a bit of pressure on the standby anti-risk currency. Price action was muted elsewhere in the G10 FX space as markets continued to digest volatility triggered by Wednesday’s FOMC policy announcement.
A quiet European data docket and second-tier US news flow that is unlikely to materially change the prevailing Fed outlook look likely to keep the consolidative tone in place. That is likely to put the spotlight on a meeting of G20 finance ministers and central bank governors in Baden-Baden, Germany. The sit-down will mark the US Treasury Secretary Mnuchin’s debut on the international stage.
During last year’s campaign, the Trump camp threatened to tear up trade agreements and take countries to task over perceived predatory FX practices. It even questioned the utility of the World Trade Organization (WTO). Risk appetite is likely to falter if Mr Mnuchin channels this kind of combative rhetoric, boosting the Yen and hurting the sentiment-linked Aussie and Kiwi Dollars.
Asia Session
European Session
** All times listed in GMT. See the full DailyFX economic calendar here.
Comments
Log in or sign up to join the conversation.