Yen edges ahead as risk appetite retreats.....>

FOREX: Yen edges ahead as risk appetite retreats

-As the New Year flash crash flushed out risk appetite among currency markets,

last week was one of recovery in risk appetite as equities advanced (Eurostoxx50

added just shy of 1%), but Monday's trade has put paid to the improved sentiment

as continental stock markets pull lower, helping lift the JPY to the top of the

G10 leaderboard this morning. USD/JPY is yet to break below the Y108 mark, which

bears will eye as a trigger for another leg lower in risk. 

-At the other end of the table, AUD and NZD are the poorest performers as

markets take profit on their strong performance last week. Poorer than expected

China trade data will have done little to help, with both imports and exports

coming in well below expectations and painting a weary picture of the Chinese

economy. AUD/USD eyes the Thursday lows at $0.7146 for the next leg lower.

-Monday's session is light on G10 data with focus remaining on political ire on

both sides of the pond: Brexit discussions reach fever pitch ahead of the

'meaningful vote' tomorrow and US markets remain wary as the economic effects of

the now record-long government shutdown must be meaningfully considered.