Yen holds firm ahead of European markets open
Risk flows keep the yen buoyed ahead of European trading
The yen is leading the major currencies bloc amid softer risk tones with Treasuries staying bid and equities holding a tad softer on the session so far. This continues the state of flux in markets throughout this week, with the yuan also a tad softer in trading today.
That is keeping the likes of the aussie, kiwi and loonie on the back foot to begin the European morning. Notably, the kiwi has fallen to a fresh three-year low against the dollar as such.
European currencies are more subdued with narrow trading ranges still prevailing but the focus in the session ahead will be on the euro with August PMI data due in a few hours.
But overall, looking ahead, the fluctuating risk mood this week goes to show the indecision of markets as the main focus stays on Fed commentary at Jackson Hole starting from tomorrow. As such, expect markets to remain more tepid and choppy in the mean time.