GBP & AUD PLUNGE, RISK OFF TONE SPARKS JPY SURGE – US MARKET OPEN

GBP & AUD PLUNGE, RISK OFF TONE SPARKS JPY SURGE – US MARKET OPEN

GBP & AUD PLUNGE, RISK OFF TONE SPARKS JPY SURGE – US MARKET OPEN

The Market Development – GBP & AUD PLUNGE, JPY SURGE
AUD: As a new year, the same quagmire persists for the Australian Dollar that has broken below 0.7000 which would be the first time since 2016. Also, it is recorded that the weakness in China growth that was confirmed by the latest Mfg. PMI that moved into contraction territory sparked a bout of selling in the Aussie. So also on the domestic front, it was reported by CoreLogic that the housing stock conditions were at the weakest due to financial crisis of house prices dropped by 5per cent throughout last year. AUD selling looks to persist as the fundamental look for AUD continues.
JPY: The Japanese Yen performed excellently across board which was observed by safe haven demand. USDJPY slightly decrease below 109.00 to trade at the least level since June last year which later lead to the increase scope for a test of the May low at 108.11. Therefore, as global growth slows, the tendency to the downside for USDJPY will gather more strength, most especially given present speculative positioning.
GBP: GBP is on the backfoot as attention remains firmly on Brexit even though the expected UK Mfg. PMI reading has been progressing. As the haven demand supports, most of the losses was due to the bounce back in the USD.

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The four trending posts that traders read are:
1. “JPY Bulls Dominate Amid Growth Slowdown and Wrong-footed Speculators” by Justin McQueen, Market Analyst
2. “Sterling (GBP) Slips Lower Despite Strong Manufacturing PMI Headline”by Nick Cawley, Market Analyst
3. “AUDUSD Price Downtrend May Resume on Weak China Economy” by Martin Essex, MSTA, Analyst and Editor
4. “Grey Swans: Low Probability Events to watch for in 2019” by Christopher Vecchio, CFA , Sr. Currency Strategist
Reference:
Https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/us_am_briefing/2019/01/02/GBP–AUD-Plunge-Risk-Off-Tone-Sparks-JPY-Surge—US-Market-Open.html

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