At midday, the Yield curve watch goes on in earnest with this mornings downtick in 10 Year UST yield’s the primary catalyst behind the drop in USDJPY.
The Aussie dollar continues to struggle after getting sideswiped by domestic Q3 wage price index that missed expectations. However, with the critical US CPI data on tap tonight we’re more likely to consolidate at session lows.
The MYR traded to a low of 4.1800 but ran into substantial buying interest on the back of profit taking ahead of tonights US CPI Despite the fall in oil prices overnight the Ringgit remains in favour on the knock-on effect from last weeks hawkish MPC.Given the drop in global commodities, the Ringgit is today’s surprisingly excellent performer in Asia FX.
The markets remain on edge as a queasy feeling is settling in around Singapore trading desks. And what drives this sense of foreboding, well simply put, its the fear of losing money of course.
Arguably this has been one of the best years for Traders in some time, and frankly, if you’re of the Profesional variety and struggled, you should likely consider a new career.
The convoluted price action we’ve encountered lately is reflecting little more than traders closing books a bit earlier than usual and taking this year’s profits to the bank.
Heading into year-end the only risk that is certain, other than the December US rate hike, is uncertainty itself making risk-taking little more than a fool’s errand.