Little Follow Through To Early Risk Off Flows
Jul-06 01:01By: Jonathan Cavenagh
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Risk off flows dominated the FX space in early trade but there hasn't been a great deal of follow through. A slight bump higher in US equity futures, and a further recovery in oil prices has helped from a cross asset perspective.
- USD/JPY dipped through overnight lows, touching the low 135.40 region, but we are now back to 135.70.
- AUD and NZD were also weaker in early trade, AUD/USD tracking to just below 0.6790, but we are now back to 0.6805, slightly above NY closing levels. NZD is back to 0.6175.
- NOK (+0.15%) and CAD (+0.08) are up a touch, in line with Brent Crude moving back above $105/bbl, versus overnight lows close to $101/bbl.
- Early dips in EUR/USD towards 1.0250 have been supported, with the pair last at 1.0265. EUR/JPY dipped just below 139.00 but is now back at 139.25. Note the 50-day MA comes in just above 139.00 today.
- GBP/USD is higher, back to 1.1965, around 0.15% above NY closing levels. We touched 1.1900 overnight. FTSE futures have gained over 1.5% in early trading today. There is little sign of pressure from domestic political turmoil in the UK. The FSTE futures move is now doubt being aided by the late US equity bounce.
