FX Action: USD-JPY has ebbed to a two-day low
FX Action: USD-JPY has ebbed to a two-day low of 111.80 so far, driven by Yen outperformance amid a backdrop of souring risk appetite (the Dollar itself has firmed against most other currencies despite losing ground to the Yen). EUR-JPY is down by 0.4% and AUD-JPY by slightly more than this. The Indonesian Rupiah has fallen to a new 20-year low, with Indonesia being one of the emerging economies on the potential-currency-crisis worry list. Markets also seem to be taking a more circumspect view of the "biggest ever" trade deal between the U.S. and Canada for any one of a number of reasons, such as the length of time it will take to be approved (it may not be until 2020 until full implementation) and the fact that, on aggregate, the new USMCA deal may not make much difference to the three economies than the NAFTA deal it replaces. USD-JPY has resistance at 114.00-05, and support at 113.70.-71.