Today’s Economic events

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The markets in Asia saw the equities falling sharply with the benchmark Nikkei225 closing -5.40% lower as Japan’s 10 year bond yields fell below 0% for the first time after the BoJ surprised with negative rates in late January. With the weak Nikkei225, the Yen continued to surge ahead higher. USD/JPY is posting losses for another day, down -0.83% for the day. Prices, however, remain above the intraday lows posted just under 114.5.

The commodity risk currencies also fell sharply today. AUD/USD is down -1.40% for the day, trading at 0.698, marking a 10-day low in prices, while NZD/USD is down by a modest -0.79% for the day, trading at 0.657. Despite the lack of any economic data, the markets continued to trade in a risk aversion mode with the Yen surging while the commodity risk currencies posted strong losses.

The European trading session started off with German industrial production falling -1.20%, more than expected -0.20%. The Euro was, however, unfazed as EUR/USD is up 0.36% for the day trading near 1.125, the same levels seen last Friday ahead of the NFP release.

The British Pound was, however, weaker in comparison, down -0.14% for the day, as the Cable struggles to hold on above yesterday’s lows near 1.4365. GBP/USD briefly posted an intraday high near 1.448 before pulling back lower. Support is seen at 1.43 which could be the next level of interest in GBP/USD. The European equity markets were also under pressure with the German DAX down -1.68% while the London FTSE100 is down -1.11% at the time of writing.

The NY trading session is quiet today with no major market moving events scheduled. USD/CAD is trading flat with -0.07% declines for the day, as prices look to form a ceiling near 1.40 handle. USD/CAD briefly tested session lows above 1.385 before recovering.  The US equity markets are also pointing to a weaker open today with the Dow Jones Industrial Average down -0.76% while the S&P500 futures are down -0.81% ahead of the market open.