Markets are increasingly nervous, with the focus on the Ukraine, but also a host of periphery countries that are also vulnerable. Accordingly, risk aversion has been the key driver of asset classes in the Asian and European sessions. The US 10‐year yield is back down to 2.64% (flirting with the first break of its 200‐day MA since May 2013),European yields are even lower; equities are weak and USDJPY has dropped below 102.00 and through its 100‐day moving average while EURCHF has dropped to a fresh 10‐month low. See bottom chart for one day FX returns highlighting risk aversion.
Read the full report: FX Daily
Scotiabank