FX Update: Both the Dollar and Yen have outperformed
FX Update: Both the Dollar and Yen have outperformed, with the latter outpacing the former, driving USD-JPY to a two-day low of 111.80 despite concurrent Dollar gains versus most other currencies. Euro weakness has remained a theme, with fresh volatility in Italian asset markets, in turn a reflection about the government's budget, weighing on the common currency. EUR-USD is down for a fifth consecutive session, this time making a three-week low at 1.1535. EUR-CHF, a cross that has been correlatively sensitive to Italian asset markets, hit a four-session low at 1.1362. EUR-JPY also descended into four-session low terrain. The Dollar, meanwhile, posted gains against the Dollar bloc units, including the Canadian Dollar, which has corrected as markets take a more circumspect view of the "biggest ever" trade deal between the U.S. and Canada (not least that, on aggregate, the new USMCA deal may not make much difference to the three economies than the NAFTA deal it replaces). The RBA left the cash rate unchanged at 1.50%, as had been widely anticipated, and the statement was little changed. The Indonesian Rupiah has fallen to a new 20-year low, which has gotten attention with Indonesia being one of the emerging economies on the potential-currency-crisis worry list.