XE Market Analysis: Europe – Dec 20, 2018

The Yen has outperformed amid a risk-off backdrop, with stock markets in Asia tumbling and S&P 500 futures showing losses of over 0.5%, building on the closing losses seen on Wall Street yesterday after the Fed refrained from signalling a pause in its tightening cycle. Oil prices are down over 2%, though remain above the trend lows seen earlier in the week. The Fed delivered on the generally expected 25 bp rate hike, and trimming in the dots to suggest two 25 bp hikes next year, versus three previously.