Shares rebounded, after a sharp sell-off, to open the weeks and December’s trade. Markets remain nervous, and this has been manifested spectacularly, in the equity and crypto markets. Part of the blame has been levelled at the disappearing ‘Yen Carry Trade’, which has been undergoing a sharp reversal, following rising inflation and bond yields in Japan. The results have been an unwinding of US Dollar assets, including crypto and bonds. The US Dollar remained steady, with the EUR trading around 1.1600, while the GBP slipped below 1.3200.
Commodity currencies banked recent gains, with the AUD trading around 0.6550, while the NZD consolidated above 0.5700. RBNZ’s newly minted Swedish Governor, appeared before Parliament and trotted out all the prescribed ‘MO’ for her future management expectations. As an associate of the WEF in a previous life and schooled through Sweden Riksbank, we can project the line she will likely follow.
