XE Market Analysis: Europe – Dec 04, 2018

A risk-back-off theme gripped markets, while a concurrent decline in U.S. Treasury yields has driven Dollar underperformance. This backdrop drove USD-JPY down by over 0.5% as the pair posted a nine-day low at 113.05. EUR-JPY, AUD-JPY and other Yen crosses have concurrently declined, although by a lesser magnitude, as the Japanese currency picked up safe haven demand. Most stock markets in Asia, and U.S. equity index futures, have turned lower as doubts about the U.S.-China trade “truce” sink in amid discrepancies between the post-G20 statements and follow-up remarks from the U.S.