Uh oh, are currency traders getting caught on the wrong side of the fence?
USD/JPY sits near the highs for the day still at 113.72 currently but something is amiss with the gains here as equities sentiment is fast eroding on the day. European equities have turned negative now and we’re seeing US equity futures also turn the corner. Nasdaq futures are down by about 0.7% while S&P 500 futures are down by 0.5% currently:
Currencies have been complacent for majority of the session so far and I’m not liking the fact that there has been a sudden turnaround in the equities space. It’s begging for risk to start shifting back to a more cautious tone and in such a scenario, the yen should not be where it is right now.
Watch this space in the session ahead.