Yen on the back foot ahead of European markets open

Author: Justin Low | Category: News

The risk mood is slightly firmer but nothing too optimistic

WCRS 11-09
Major currencies are sitting in narrow ranges for the most part but the aussie and yen are the decent movers following a tweet by Global Times editor that China is looking to introduce important measures to negate the impact of the trade war.

I would argue that the removal of the QFII and RQFII limits yesterday is part and parcel of those measures but at the same time, it shows that China is preparing to play the long game here rather than hope for the US to move their red lines.

Nonetheless, the aussie jumped on the headline above as investors view it as a reprieve with equities inching higher as well. Meanwhile, the yen - which was already a tad weaker - softened further with USD/JPY sitting at fresh six-week highs still currently.

Looking ahead, it's going to be a bit of a quiet one with little on the economic calendar to move things along. Market participants are keeping their eyes on the ECB tomorrow so expect markets to remain more composed and measured in the run up to that.

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