AUD/CAD dropped over a full percentage point last week, aided by the Australian Dollar’s reactive risk-off weakness. The currency pair fell to a new multi-year low, its lowest point since April 24, 2020. Despite the fresh lows, there are signs that a reversal could be near. Last week’s new low corresponded with a higher low in the Relative Strength Index...
The major of USD/JPY has been remarkably quiet while the fireworks have went off elsewhere, and this can be explained by the fact that both currencies can see safe-haven flows during times of panic. The USD has held up on the expectation of higher rates while the Japanese Yen has been bid relatively-well elsewhere, like EUR/JPY or GBP/JPY, as carry trades...
The Japanese Yen may get a boost if market-wide risk aversion grips investors amid turbulence in the US$3 trillion leveraged loan market. With the Fed intent on raising rates in 2022 and halting its bond-purchasing program, loans made under an easy-credit regime may be in trouble. As a result, the appeal of the anti-risk JPY and haven-linked US Dollar may...