-
Risk-Off Dominates, Funding Currencies Thrive
A classic 'risk-off' day took hold in market dynamics as manifested via the relentless appreciation in funding currencies the likes of the CHF, JPY and the EUR to a lesser extent. With the S&P 500 falling by more than 1%, accompanied by similar weakness in the DJIA and the Nasdaq, coupled with the US 30-year bond yield about to break into an all-time low, it was logical to expect commodity currencies (AUD, NZD, CAD) to suffer the consequences too as seeking high-beta options under risk aversion barely ever go hand-in-hand. Meanwhile, the Sterling was given a bit of a boost in demand today, closely following the ... (full story)