US Dollar, Yen Rally May Continue As All Eyes Turn To Davos

US Dollar and the Japanese Yen were buoyed safety-seeking capital flows while the sentiment-geared Australian, Canadian and New Zealand Dollars fell alongside stocks as the markets’ mood darkened in Asia Pacific trade. The moves follow an IMF downgrade of global growth expectations and look ahead to the World Economic Forum set to begin today in Davos, Switzerland.

The gathering of economic policy and financial market bigwigs will take up the multitude of headwinds menacing the nine-year expansion following the 2009 global recession. The US-China trade war, Brexit, emerging market instability and the rise of anti-establishment populists and nationalists on the European continent are just some of key issues on the docket.

Broadly speaking, the markets will be looking to the Forum to gauge the attendees’ disposition: how worried are they about what has already transpired and what is looming on the horizon? If the overall tone of the emerging soundbites signals anxiety, that may be echoed by still further risk aversion across financial markets. A steep intraday drop in S&P 500 futures hints at pre-positioning for just such an outcome.


Asia Pacific Trade Session Economic Calendar


Europe Trade Session Economic Calendar

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

Disclosure: Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment ...

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