Market Brief: Amazon Earnings & Brexit Limbo Cap Risk Appetite


A summary of news and snapshot of moves from today’s Asia session.

View our guide on how to interpret the FX Dashboard

FX Brief:

  • Lack of economic data, market-moving headlines or, pretty much anything made for a quiet session in Asia. Traders will now be focussed on next week’s Fed meetings, so we may well find trading ranges to be below average and in a ‘wait and see’ holding pattern.
  • Brexit uncertainty weighed slightly on risk, seeing NZD and AUD weaken with NZD currently the weakest currency and largest mover of the session. NZD/JPY has broken yesterday’s low to suggest a reversal could be underway and ZD/USD has touched a 5-day low.
  • As you’d expect, FX majors trade in narrow ranges and, across the 20 FX pairs we track, the daily ranges have averaged just 30% of their ATR. Still, this leaves potential meat on the bone should any headlines see volatility stir throughout the European or US session.

Equity Brief:

Up Next

  • A quiet session overall for economic data. German IFO warrants a look though, as the business sentiment indicator showed minor signs of a revival with its first rise in 6-month (from multi-year, pessimistic lows….). EUR/USD closed below 1.1100 yet it remains a key level going forward, so if the rebound continues we could expect Euro to break back above this level. If extend its retracement lower if sentiment sours once more.

Matt Simpson and Kelvin Wong contributed to this article

Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.

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