Over the past two trading days, US equities have struggled to gain ground and failed to do so despite a groundbreaking announcement by central banks around the world.
Today the bulls have finally given up, paving the way for stocks to close at a weekly low. Even though the Tankan report last night was much weaker than expected, Yen weakness was only sustained against the US dollar. Instead, risk appetite once again dominated Yen trading erasing all of the prior gains in the Yen crosses. The big event risk next week is the Bank of Japan interest rate decision - unfortunately, we do not expect much volatility from the decision because the BoJ has and will continue to leave interest rates unchanged for the foreseeable future.