Pip Diddy

Another week, another chance to buy the yen? Here are potential catalysts that might affect the low-yielding currency this week!

The Aussie took cues from trade war concerns and commodity price action last week. Will the comdoll get a chance to recover some of its losses this week?

Global trade-related news took its toll on the Kiwi last week. Will this week’s set of catalysts provide the comdoll some reprieve?

Today’s morning London session was rather wonky since the higher-yielding Kiwi outperformed its peers while the safe-havens Swissy and yen were at the bottom of the forex heap. By the way, did I mention that today is another risk-off day?

With no major economic report on the docket, Asian session market players concentrated on the brewing trade war and its impact on the Asian markets.

Trade war concerns just got real when U.S. President Trump signed a memorandum to impose tariffs on $60 billion worth of Chinese imports. Not surprisingly, higher-yielding currencies and U.S. equities took huge hits.

Today’s morning London session was a rather lively one, with lots of themes playing out. And the main themes are the euro’s broad-based weakness , the yen’s strength, and the pound’s volatile knee-jerk reaction to the BOE statement and minutes.

Asian session traders caught up to their U.S. counterparts and priced in a not-so-hawkish FOMC statement. Meanwhile, the Aussie was dragged lower by a weak jobs report.

The main event for the New York session turned out to be a huge downer for the dollar as bulls had been hoping to see more hawkishness.

Lots of themes were playing out during the session, with GBP demand being the most notable. Other noteworthy themes include USD weakness ahead of the FOMC statement, as well as lack of love for AUD and NZD.