Yen Holds Lead As Rebound In E-Minis Fails To Spark Risk Recovery In G10 FX Space

Friday's recovery in risk appetite proved fragile as the Antipodeans paced losses while the yen outperformed. A turnaround in U.S. e-mini futures failed to entail a reversal of initial risk-off moves in G10 FX space.

• The summary of opinions from the BoJ's most recent monetary policy meeting, which echoed the Board's familiar train of thought re: inflation. One member said the Bank should pay "due attention" to FX market developments.
• USD/JPY 1-month risk reversal continued to lose altitude, declining for the fifth consecutive day, with bearish sentiment among options traders still firming.
• Regional risk barometer AUD/JPY was the big mover at the start to the week, virtually unwinding its advance from the prior trading day. Its 1-week implied volatility fell to the lowest point since Jun 2.
• Antipodean cross AUD/NZD shed a handful of pips despite a degree of tightening in AU/NZ 2-Year swap spread. Financial markets in New Zealand re-opened after a long weekend.
• A rebound in crude oil prices allowed the loonie to recover, even as the Antipodeans continued to lag.
• The U.S. dollar index (BBDXY) remained heavy, touching its lowest levels since Jun 16.
• Looking ahead, the U.S. will report pending home sales & flash durable goods orders today. Comments are due from ECB's Lagarde & Villeroy.