Havens on the front foot as global tensions...>

FOREX: Havens on the front foot as global tensions escalate

-Despite a market holiday in Japan, the JPY rallied early in the Asia-Pac

session and well into the European morning to sit at the top of the G10 FX table

ahead of the NY crossover. USD/JPY edged through the Friday low to touch fresh

multi-month lows at Y105.24. The currency flash crash low printed in January at

Y104.87 is now well within range for bears.

-Much of the focus has been on the further escalation of tensions in Hong Kong

and Italy. Protests in Hong Kong extended through the weekend, with the city

airport having to cancel all flights for the rest of the day. Negative risk

sentiment has rippled through into equities, with US stock futures pointing to a

lower open to start the week.

-In Italy, further political instability is expected as various factions of

government are wargaming for early elections should an upcoming confidence vote

topple the current PM. EUR trades markedly weaker, prompting EUR/USD to lose the

$1.12 handle early on.

-Focus turns to the response of US markets after another volatile morning.