The yen climbed against all its Group-of-10 peers and Treasuries rallied as a global stock rout fueled demand for haven assets.
USD/JPY falls 0.4% to 108.71; reached 108.55, lowest since Jan. 30. Leveraged investors are liquidating long positions through 109.00, according to a trader.
“While the correction may last a week, it’ll be temporary and not the start of a meltdown because the global economy is solid,” said Tsutomu Soma, general manager of SBI Securities Co.’s Independent Financial Advisor department in Tokyo. “USD/JPY may temporarily dip below 108 but it will stay in a recent range of 108-110.”
The JPMorgan Global FX Volatility Index rises to the highest since September as Asian equities sink following the overnight plunge in U.S. shares. Bloomberg Dollar Spot Index gains for a third day.
10-year Treasury yield slips as much as 6 basis points to 2.65%, before paring the loss to 3 basis points.
Trading in Treasuries on Tuesday is dominated by algorithm funds, according to brokers.
Source: Bloomberg Pro Terminal
Jr Trader Alexander Kumanov
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.