S&P 500 futures track lower, nearly flat on the day now

Author: Justin Low | Category: News

Are currencies ahead of the curve or slow to respond?

Risk sentiment is shifting and the turn is rather sharp over the last hour as E-minis have basically erased all the gains seen on the day, as high as 0.6% earlier. European equities have also moved lower and are mostly trading near session lows currently with the Eurostoxx, CAC 40 and the DAX all in negative territory currently.

However, of note the yen and risk currencies i.e. aussie and kiwi are still mostly unchanged from early morning levels. USD/JPY continues to sit near the highs at 113.49 currently while AUD/USD and NZD/USD are still retaining gains trading at 0.7236 and 0.6872 respectively.

Despite some positive developments on the trade front between US and China, something is amiss here with equities sentiment and this will be something to watch out for in the coming hours. If it starts to impact the US cash equity market negatively, expect currencies to be the one to play catch up to the change in sentiment here.

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