Risk-off flows jolt currency markets - Investec

Research Team at Investec, notes that yesterday was another day of risk-off moves, as stock markets were a sea of red and currency markets saw safe-haven moves into the US Dollar, and notably the Japanese Yen which reached 1.5 year highs.

Key Quotes

“Many articles are stating the market is suddenly concerned again about the global economy without apparent cause, despite not being concerned during the risk rally of February and March. That seems more like story fitting than reality.

In reality the Panama secrecy leak of wealthy individuals using tax havens has put pressure on many world leaders and the uncertainty could be causing some market panic, with the story claiming its first victim yesterday as Iceland's PM stepped down. We also have another Janet Yellen speech this week, where markets may be concerned her recent dovish rhetoric may have changed in light of another 200k+ non-farm payroll increase, with tonight's March FOMC minutes adding to the uncertainty.”