The strongest currency against it’s major currency peers today is the JPY. The flight into the “relative safety” of the JPY is helping the pair. The currency is strongest against the AUD (AUDJPY is the lowest).
The Strongest and Weakest currencies in trading today.
Last Friday, the AUDJPY fell below the 200 day MA (green line in the chart below at 94.58). It also fell below the 38.2% retracement level not far from that level at the 94.621 level (see chart below). On Tuesday, those two levels were tested and held. Both yesterday and again today, the momentum lower continued.
The AUDJPY has moved the most in trading today.
The weakest currencies are the AUD and the NZD today. Yesterday the NZD was the strongest currency in the turmoil. The AUD was more volatile. Today, both are weak with each falling the most against the JPY and the USD (the safer havens I guess). Markets are fickle and more abnormal (see my video from yesterday by CLICKING HERE)
Stocks and Bonds.
The world equity markets are continuing to be under pressure (US pre-market Dow was as low as 200 down) They are off the lows but still depressed. Flows into bonds are according to safe-haven and risk. The US and German bonds are the favored. Meanwhile, Spanish and Italian yields are moving in the opposite direction as investors want safety.
Stocks and Bonds in the safe havens like US and Germany are low. Spain and Italy (risk) are moving higher in yield.
Initial Claims, Industrial Production/Capacity Utilization, Philly Fed index (Empire Mfg was weak yesterday), NAHB Housing Market index, TIC flows make up a full calendar of economic releases in the US today. In Canada International Securities Transactions and Manufacturing Sales will be released. Fed speakers today include Plosser on the economic outlook, Lockhart on workforce development, Kocherlakota on Monetary Policy, Bullard on US demographics all speak today.
