Funding currencies retreat over rising risk aversion

Funding currencies struggled to make any sustainable gains over Dollar, in spite of weaker payroll report on Friday. Rising risk aversion and lack of demand for safe haven and liquidity could be blamed for this.

Euro on Friday traded as high as 1.132 against Dollar, however was down as much 100 pips from there by closing as SPX 500 recovered from 1898 to 1950 by closing. Today it move similar attempts, which failed around 1.129 against Dollar and Euro is currently back where it was during Asian hours around 1.123 area.

Moreover, rising of high yielding currencies like Aussie, kiwi making their advance against Dollar, funding currencies like Euro and Yen are totally out of favor. Yen however is continuing tight triangular consolidation heading into this week's BOJ monetary policy.

• Australian Dollar is up 0.8%, trading at 0.709 against Dollar.
• Kiwi is up more than 2%, trading at 0.651 against Dollar.

Equity gains today all across the world are pointing to broad based return of risk appetite. With weaker payroll, FED hike expectations has now seriously been pushed back towards next year.

• Australian benchmark ASX200 closed 1.9% up in closing.
• Japan's Nikkei CFD pointing to more than 2% gains.
• SPX500 is up 0.7% so far, before cash market opens in US.
• UK's FTSE 100 is up 2.15% so far.
• DAX is up 2.5% so far, while European blue chip EuroStxx50 CFD is 1.5%.