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USDJPY Tanks As Stocks Give Up Yesterday's Gains

By: OilPrice.com | Tuesday, May 16, 2017

Having reached new record highs at the open amid yet another panic-buying scramble, stocks have turned down dramatically this morning (seemingly around the Industrial Production data). VIX is up modestly but as the dollar index weakens, USDJPY has tumbled back below 113.00...

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As stocks rapidly erase yesterday's gains...

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Some are arguing that McConnell's comments may have been the catalyst... Perhaps signaling that none are working on tax reform?

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And here is a just as confused Citi pointing out the sharp move lower which it believes is all rates-driven.

USDJPY slips on fixed income

USDJPY has lost close to 50 pips here as we type in a rather sharp and aggressive move. The pair is now testing the 113.00 handle, with the 100d MA right ahead at 112.94. The move in JPY is seen in the cross space, with EURJPY turning from the highs and trading at 125.25 at print. Remember, our spot trader is looking to add to a core long at 125.00.

This is a fixed income move - with US yields slipping into fresh session lows. So far we haven't seen anything explicit to trigger it. US stocks are down on the day and there's a lot of noise on the political front. The fallout continues following allegations that President Trump disclosed highly classified information to the Russian Foreign Minister Lavrov about a planned IS operation. Trump tweeted today that he had a "right" to disclose "facts pertaining to terrorism and airline flight safety" while the White House denied the reports. National security adviser McMaster will brief reporters at the White House at 11:30 EDT / 16:30 BST, with some speculating he may resign. Stay tuned.

By Zerohedge for Safehaven.com

Author: OilPrice.com

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