Risk-off at play as Oil keeps falling, BOE Carney’s testimony eyed

By FXStreet FXStreet (Mumbai) – Risk-aversion extends into Asia as oil prices extend their downward spiral and continue to weigh on investors’ sentiment. Therefore, flight to safety emerged the main theme this Tuesday so far, and gold was the best performer among safe-havens, followed by yen.

Key headlines in Asia

PBOC’s Zhang against further RRR cuts for now

OPEC officials see oil market begin to start rebalancing – Reuters

Japan’s Amari: Won’t comment on extra BOJ easing as markets might react

Dominating themes in Asia – centered on JPY, AUD and NZD
An air of caution prevailed in the Asian session today, as the ongoing sell-off in oil markets raised concerns over the Fed’s take on the rate hikes prospects and rattled investors’ confidence once again. Moreover, markets completely ignored China’s efforts to boost liquidity as the Lunar New Year approaches, with the Chinese central bank making the biggest daily injection in three-years. Focus continues to remain on the oil price action and the resultant impact on risk appetite and broader market sentiment.

Amidst widespread risk-aversion, the yen remains the biggest gainer across the FX board, while the pound emerges the weakest. The USD/JPY pair continues to consolidate on 118 handle, with the …read more

Source:: FX Street