Yen overtakes Australian Dollar as the strongest currency today as risk aversion intensifies. At the time of writing, DOW is down -1.38%, S&P 500 down -1.30%. NASDAQ is the worst and is down -1.88%. Treasury yields also reversed earlier gains. 10 year yield hit as high as 3.215 earlier today but is now back at 3.173, down -0.006. It’s clear sign of flight to safety. For now, Australian and New Zealand Dollar are the next strongest ones.
On the other hand, Sterling remains the worst performing, as weighed down by Brexit impasse, retail sales miss and yesterday’s CPI miss. Canadian Dollar is the second weakest as WTI crude oil stays soft, even though it’s back above 69. Euro is the third weakest on Italian Concern.
In European markets:
- FTSE closed down -0.39% at 7026.99
- DAX closed down -1.07% at 11589.21
- CAC closed down -0.55% at 5116.79.
- German 10 year yield drops -0.0441 to 0.420
- Italian 10 year yield rose 0.1334 to 3.677.
- That is, German-Italian spread is above 320!
Upcoming in Asian session, focus will be on Japan CPI and a batch of Chinese data included GDP.