Evident risk-off theme overnight: Nikkei & ASX currently down almost 3%, with Shanghai down 2%. Global commodity weakness is impacting giants such as Glencore & Noble. In the FX market this translated into the usual Jpy buying and the best pairs going into today seem to be GbpJpy, CadJpy, AudJpy. Vix edging back up, as equities remain under pressure. Might be easier to short into EU equities however, rather than play this risk-off theme via FX. Recently, it seems that FX market participants are taking cues from Equities anyhow.
German September CPI is the only relevant data print today. Otherwise the focus is again mainly on
central bank speakers, including ECB’s Coene, BoE Governor Carney and the ECB’s Weidmann.
The watchlist for the week has been shuffled around due to recent market developments. Here’s what I’m watching now: