From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
Risk assets are on the ropes after taking a series of heavy hits last week.
Equities have been a sea of red across the board as selling pressure broadens out. Growth continues to collapse, and even many of the latest leadership groups – like banks – are failing to hold their breakouts.
When we look inside the stock market, there’s certainly a bear market feel to the price action in recent weeks. For example, offensive areas are being sold indiscriminately while defensive sectors make new relative highs.
But when we look outside the stock market, the story is very different. Despite the volatility, we’re still not seeing much of a bid in traditional safe-haven assets.
In today’s post, we’ll focus on the Japanese yen. But it’s the same story for gold and Treasuries.