(MENAFN- DailyFX) Talking Points:
Yen, Franc rise as commodity FX drops as market sentiment sours -
- Whipsaw volatility risk still high absent top-tier scheduled event risk -- Are FX markets matching our forecasts so far in Q3? -- -- The Japanese Yen and the Swiss Franc outperformed as sentiment soured across financial markets in Asian trade, boosting standby anti-risk assets. Investors seemed to be spooked by the threat of military action on the Korean peninsula following . Commodity bloc currencies are typically sensitive to swings in market mood and proved to be so against, with the Australian Dollar leading the way lower having been stung by . The New Zealand Dollar held up best as traders look ahead to the .
Looking ahead, another quiet day on the economic data front looks likely to keep risk trends at the forefront. European shares have picked up on the negative lead coming out of Asia and futures are pointing decidedly lower, arguing for continued risk aversion when Wall Street comes online. On balance, this points to continuation of overnight trends. However, just as yesterday's absence of top-tier news flow opened the door for today's headline-inspired volatility (as ), so too the lull today may pave the way for a swift reversal if cooler heads appear to be prevailing.
Need help interpreting how news impacts markets? and ask your question live! Asia Session
European Session No data.
** All times listed in GMT. See the . --- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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