Markets are still reeling after Apple’s shock earning’s warning which turned the focus to a softening Chinese economy. Slow iPhone sales in China have combined with worse than expected China Manufacturing PMI to drive markets into the safe havens of the yen and dollar.
The USD/JPY is now down by over 3% on the week as traders hunt down the safety of the yen at the expense of other currencies including the dollar.
Other yen pairs are suffering, with the AUD/JPY down 4.43%, the GBP/JPY down 4.23% and the EUR/JPY down by 3.80%. Yen pairs are well off their overnight lows, but are still damaged goods.
The dollar index spiked to fresh highs yesterday, but is reversing this morning as money flows from the dollar.
The AUD/USD hit a ten year low overnight, though recovered at least half of those losses.
The EUR/USD fell heavily yesterday, though is recovering half of these losses this morning. The GBP/USD also fell heavily, but unlike the euro is lagging in its recovery so far this morning. The EUR/GBP is heading back towards the highs as the pound lags.
The euro is lagging against the Swiss franc though, with the EUR/CHF testing the 2018 lows. The USD/CHF is lower again, testing the 0.9850 level.
Today’s highlight is ISM Manufacturing PMI
The euro continues to struggle against Swiss franc as traders clamour for safe havens.
The EUR/CHF’s 2018 lows are now being challenge, with further lows on the cards.