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While optimism across financial markets remains unrealistically elevated about the gradual reopening of economies, the reality is distinctly different.

So far this week, the Japanese Yen has gained 2.03 percent against the US dollar, as the appetite for risk stalls and being favored by its status as a safe-haven currency.

Yields fall back into the familiar range over the past two months or so For bank trade ideas, check out eFX Plus 10-year Treasury yields are down by 4 bps to 0.687% on the day, continuing its retreat since the start of the week after the breakout from the end of last week fades.

This refutes the Reuters report yesterday report For bank trade ideas, check out eFX Plus But again, discussing and thinking about them is one thing. Formal work is also another thing. So, there's that to consider if you really want to look at the situation.

Comments by China's Cabinet adviser – Says China, US should resume timely communication on trade, other issues For bank trade ideas, check out eFX Plus One wonders if this is a message to the US or for prospective companies looking to invest into the Chinese market. Either way, both sides don't appear to be on […]

Relations between Australia and China continue to be frosty as of late That just continues to add to the brewing tensions in the relationship and if it escalates further, this won't bode well for the aussie – particularly if there are economic consequences.

The softer risk tones continue to prevail – Eurostoxx -1.9% – Germany DAX -2.5% – France CAC 40 -2.1% – UK FTSE -2.3% – Spain IBEX -2.8% Those are decent-sized losses but comes on the back of a super-sized rally over the past two to three weeks in the equities space. US futures are also […]

Comments by French finance minister, Bruno Le Maire – Says that the economy must restart faster – Says French economy can rebound strongly as soon as 2021 For bank trade ideas, check out eFX Plus

GBPJPY downside The medium term case for GBPJPY weakness remains. Here is the rationale for the case. GBP weakness JPY strength The JPY is the go to risk off currency and has been strengthening lately on the pre- FOMC jitters. There are multiple reasons for potential JPY strength going forward. They include the following:

A softer mood to start the session – German DAX futures -2.4% – UK FTSE futures -1.9% – Spanish IBEX futures -2.3% For bank trade ideas, check out eFX Plus