Safe-Havens Supported As Concerns Surrounding The Global Economy Grow

Heading into today’s European trading session, the risk tone is leaning risk-off. Asia-Pacific indices are negative across the board, measures of volatility are elevated and safe-havens firmer.

Leading Asia-Pacific indices to the downside is the CSI 300 at -3.74%, followed by the Hang Seng at -3.54%, the Nikkei 225 at -1.90% and the Topix at -1.50%. The ASX 200 is closed as Australia observes its Anzac Day.

In the FX complex, it’s safe-havens leading to the upside given the overall risk-off tone, with JPY in pole position, followed closely by USD and CHF, respectively. Analysts note that the global economic outlook is predominantly driving the risk-off tone as concerns of a global slowdown continue to grow.

Consequently and in keeping with the risk tone, it’s AUD leading to the downside, with AUDJPY slipping below the 92.00 handle and AUDUSD slipping below the 0.7200 handle.

Looking ahead, today’s economic calendar is light on data. As such, expect external influences such as the prevailing risk tone and intermarket factors to remain the dominant drivers of price action.