Heading into today’s European trading session, the risk tone is leaning risk-on. Asia-Pacific indices are notably stronger, measures of volatility subdued and safe-havens weaker.
Leading Asia-Pacific indices to the upside is the Hang Seng at +8.30%, followed by the CSI 300 at +4.32%, the Nikkei 225 at 1.64% and the Topix and ASX 200 at +1.46% and +1.10%, respectively.
In the FX complex, the positive risk tone sees AUD leading to the upside, closely followed by CAD. The risk-on tone appears to be primarily driven by hopes for more stimulus in China following comments from Vice Premier Liu He, who stated that “China will roll out policy steps favourable for its capital markets”.
In contrast and leading to the downside is USD, while JPY also trades lower across the board – in keeping with the current risk tone. Consequently, DXY once again trades below the 99.00 handle, while NZDJPY has reclaimed the 80.00 handle.
Looking ahead, today’s European session is light on tier one data, with the main event coming in late in today’s US trading session – the FOMC’s latest policy decision. Before then, however, we will see the release of Canadian CPI and US Retail Sales.
Leading Asia-Pacific indices to the upside is the Hang Seng at +8.30%, followed by the CSI 300 at +4.32%, the Nikkei 225 at 1.64% and the Topix and ASX 200 at +1.46% and +1.10%, respectively.
In the FX complex, the positive risk tone sees AUD leading to the upside, closely followed by CAD. The risk-on tone appears to be primarily driven by hopes for more stimulus in China following comments from Vice Premier Liu He, who stated that “China will roll out policy steps favourable for its capital markets”.
In contrast and leading to the downside is USD, while JPY also trades lower across the board – in keeping with the current risk tone. Consequently, DXY once again trades below the 99.00 handle, while NZDJPY has reclaimed the 80.00 handle.
Looking ahead, today’s European session is light on tier one data, with the main event coming in late in today’s US trading session – the FOMC’s latest policy decision. Before then, however, we will see the release of Canadian CPI and US Retail Sales.