#CHF and #JPY strength into the Western evening on Wednesday and early in #Asia underscores the switching back off of ‘risk’ after quite a battering for that sentiment in the last 36 hours.
You name it, we’ve had it: profit warning from giant tech bellwether, shaky macro data, rating downgrades and all against the backdrop of the shifting sands around Greece.
Also note vis-a-vis risk, the US 10-year yield late Wednesday went below 3.0% for the first time since December 2010.
Further jabs for the euro zone may come from Finnish media reporting that Social Democrats have “walked out of government (coalition) talks.”
EUR/CHF hit record lows around 1.2085 with marked offers reported from real money and leveraged accounts ahead of 1.2000.
And solid underpinning for the dollar and the euro under this pressure may be as far down as the Ichimoku bottom at ¥80.90 and 100-day moving average at ¥115.42 respectively.
Add low volume with a number public holidays in the bloc Thursday and we will probably have an interesting day at hand.