USD/JPY fading with stocks flat
A pessimistic mood is bearing down on the FX market. Take USD/CAD, which is at a fresh 11-year high at 1.3447 despite a 1% rally in oil prices today.
The rest of the commodity currencies are also bleeding lower despite no notable change in stock markets. The bond market is sending a similar signal with 10-year yields now down 5 bps to 2.05% compared to 2.11% a few hours ago.
I'm keeping a close eye on USD/JPY at the moment. If it breaks the US low of 119.61, I expect a quick move back to the session low of 119.25 if/when stocks roll over.
