USD: Not The Start Of A Long-Lasting Trade; JPY: In A Sweet Spot
The US dollar is rocking and rolling alongside stock markets. What’s next? Here is the view from ING:
Here is their view, courtesy of eFXnews:
ING Research discusses the USD and JPY outlook amid the recent broad risk-off sentiment across global markets.
“While one could argue that the correction in equity markets was long overdue, in our view the playing field has not changed dramatically to the extent that it warrants a long-lasting and persistent risk asset sell-off (vs a temporary and natural correction)…
While risk assets will likely remain under pressure today and in coming days, we don’t see this a start of a long-lasting trade. USD to benefit for now,” ING argues.
“The Japanese yen remains in a sweet-spot. With the bond market sell-off fully spilling into the equity markets, the safe-haven yen benefits (particularly when yield differentials are no longer moving against JPY). USD/JPY 108.28 is the next support level to watch,” ING adds.
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