Tuesday, June 14, 2016

20160614 FX Daily Report



Highlights of today’s FX Daily as follow:-

·         Market sentiment was dominated by risk aversion with high market volatility and global yields plunged. US VIX +23%, pushing JPY to strongest in 21 months.
·         EUR/USD is likely to see upwards pressure on bearish biasness of European equities, with VIX index and carry trade both rising
·         Expectations of no change in monetary policy by BoJ to keep JPY steady.
·         USD/MYR down 0.5% on risk-aversion trade. USD/MYR to trade on competing forces of weakening bias of CNH and oil prices against easing SGD/MYR and technical support for KLCI. Key risk on our view is the MSCI’s decision on inclusion of China’s Asia-shares today.

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