JPY leads the way heading into the European trading session
The yen is the silent beneficiary from the lack of headlines and data to start the day/week, with Asian equities dragged lower on the back of trade war jitters between US and China and Treasury yields also seeing some flows as a result of that.
The Nikkei is down 0.81% now as we move towards the close at the top of the hour, while US 10-year yields are down 1.6 bps to 2.904% on the day. And the two are helping to keep the yen bid as we get into European trading later.
Other major currencies have seen little change on the day so far with less than 0.1% gains/losses against the dollar.
The euro meanwhile is the weakest performer heading into the European session, with EUR/USD tracking back under the 1.1600 handle once again with some worries over a breakdown in Merkel's government.
Latest developments there is that Merkel has been given an extended deadline to reach a deal with other EU partners over an asylum policy row. The deadline given by Germany's interior minister, Seehofer, is said to be about two weeks.
I guess "Operation: Save Germany" will be the number one item on the agenda at this month's EU Summit.
