JPY back in demand as markets flood to........>

FOREX: JPY back in demand as markets flood to safer shores

- After a particularly volatile few days last week, JPY is back in demand early

Monday, dragging USD/JPY further below the Y112 handle as risk-off reigns across

European markets. Equities are sharply lower across the continent, with the

EuroStoxx50 suffering its worst trading day since the session following the EU

referendum in 2016.

- Italian markets in particular are bearing the brunt, with volumes in bonds and

stocks considerably higher than average. This follows reports of further

Coronavirus outbreaks in as many as 11 towns across Northern Italy, prompting

local officials to consider a number of economic measures to combat economic

weakness. Such proposals include mortgage and tax relief for those affected.

Additional cases reported in South Korea have stirred concern, further fuelling

the bid in haven assets. High beta FX including NOK, AUD, NZD are all suitably

lower.

- The calendar's clear Monday, with no data releases or speakers of note until

BoE's Haldane & Fed's Mester after the European close.