USD/JPY falls as the mood in markets sours ...Middle East

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USD/JPY falls as the mood in markets sours

The early optimism in risk assets has quickly unwound. A 0.9% rise in the Nasdaq has turned into a 0.6% decline and the S&P 500 is down 0.3%. Bitcoin is also back below $90,000.

Incredibly, European stocks are not bothered at all. They've hugely outperformed the US so far this year and the DAX is up 2.8% today.

    Money appears to be moving out of the US and in favor of cheaper valuations. That could be rotation or it could be the unwind of a very popular long-US, short-world trade. In any case, it's been the trading theme of the year so far.

    In FX, we're seeing it today via selling in USD/JPY as the pair has now completed the retracement of the earlier rally.

    This article was written by Adam Button at www.forexlive.com.

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