Asia Pacific Market Open – S&P 500, US Dollar, British Pound, Japanese Yen, Brexit Latest
- US Dollar gained as traders sought safety amidst DAX[1] and S&P 500[2] heading lower
- Brexit latest sunk the British Pound[3] as DUP backed a Tory Eurosceptic amendment
- DXY[4] index may fall as upside momentum fades, JPY[5] may rise as APAC shares fall
We released our 4Q forecasts for the US Dollar in the DailyFX Trading Guides page[6]
The US Dollar started off the new week with gains against most of its major counterparts. Its status as the world’s reserve currency helped it to capitalize on a rout in European benchmark stock indexes despite progress in Asia Pacific equities[7]. The latter may have helped the DAX and Euro[8] Stoxx 50 gap to the upside, but almost immediately these indexes began trading lower.
With that in mind, the initial positivity in market mood did not last long and this transitioned into Wall Street. The S&P 500 and Dow Jones[9] declined 0.43% and 0.50% respectively as US government bond prices rose, signaling a flight to safety. As a result, we saw the anti-risk Japanese Yen pare losses from the first half of Monday’s session as it finished the day little changed.
Gains in USD[10] weighed against the ‘pro-risk’ Australian and New Zealand Dollars despite the initial ‘risk-on’ trade. Meanwhile the British Pound underperformed, held down by the greenback and recent Brexit news. According to a report from
