TALKING POINTS – YEN, AUSTRALIAN DOLLAR, APPLE, STOCKS, POUND, BREXIT
- Yen soars, Aussie Dollar falls as Apple Inc revenue cut sours sentiment
- British Pound down as UK companies prepare for “disruptive” Brexit
- S&P 500 futures suggest the risk-off mood likely to find follow-through
The anti-risk Japanese Yen soared in Asia Pacific trade after Apple Inc slashed first-quarter revenue figures. Similarly-minded Swiss Franc and US Dollar also rose while the Australian Dollar led sentiment-geared FX downward. Apple CEO Tim Cook cited an unexpectedly severe growth slowdown in emerging markets and hinted at the US-China trade war as a leading culprit behind the revenue downgrade.
The British Pound declined, building on the prior day’s heavy selling. That drop came amid concerns about the looming threat of a “no-deal” Brexit. That followed manufacturing PMI data showing inventories surged last month. The closely-watched survey from Markit Economics chalked up the build in stockpiles to companies stepping up preparations for a “potentially disruptive” UK exit from the European Union.
YEN MAY EXTEND GAINS AS MARKET MOOD SOURS
Looking ahead, a lackluster offering on the European data docket seems likely to keep risk appetite trends at the forefront. Bellwether S&P 500 futures are pointing convincingly lower, hinting that trading patterns prevailing in APAC hours are likely to find follow-through as the tone across global markets remains defensive. A soft manufacturing ISM survey may amplify the dour mood.
See our market forecasts to learn what will drive currencies, commodities and stocks in Q1!
ASIA PACIFIC TRADING SESSION
EUROPEAN TRADING SESSION
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