The sharp sell-off in U.S. stocks on Monday drove currencies sharply lower. While monetary policy is an important long term driver of currency flows, risk appetite has the most significant short-term influence on currency movements. Sentiment is king because when investors are nervous nothing else matters. We saw that today with the Yen and Swiss crosses tumbling on the back of the steepest decline in stocks since October. Investors are nervous about the Delta coronavirus variant, rising prices and how taper actions of some central banks could impact the markets. Over the weekend, new restrictions were imposed across ... (full story)