It was an exceptionally active day in the foreign exchange market with many major currency pairs unwinding Wednesday’s moves. A confluence of factors turned risk on to risk off and breakouts into fake outs. The sell-off began in Asia after the People’s Bank of China Governor Zhou warned about excessive optimism. It exacerbated after the unexpected election decision in New Zealand and then carried over into Europe and North America when Spain took steps to suspend Catalonia’s autonomy. Reports in a Taiwan newspaper that Apple cut its orders for iPhone 8 also added pressure to asset prices, causing U.S. bond yields to ... (full story)