FX Action: USD-JPY has settled
FX Action: USD-JPY has settled in an oscillation in the lower-to-mid 106.0s. The balance of risks remain to the downside, with the Yen likely to see a renewed richening in its safe haven premium. While investor risk appetite improved over the last week, stock markets are sputtering, and there remains a distinct restive tone in mix of factors influencing market sentiment. A Bloomberg report highlights difficulties in arranging face-to-face trade talks between the U.S. and China, which are, or were, supposedly restarting this week. The U.S. rejection of Beijing's request to delay the start of tariffs that came into effect over the weekend has maintained high tension in relations. Also in the mix is Argentina's debt crisis and the risk of a disorderly, no-deal Brexit, which would have the potential to push the European economy into recession (it should be stressed that a no-deal scenario is not a certainty, and it is still a possibility that Brexit could be cancelled).