Past event indicates further upside in safe assets, sell USD/JPY?
Fresh concerns about Russia involvement in Trump’s campaign during last year’s presidential election may drive safe-haven currency Yen higher. The news brought S&P 500 down as much as 0.6%.
- Donald Trump’s eldest son enthusiastically welcomed a purported offer of Russian government assistance to undermine Clinton’s campaign last year.
- According to the emails, Robert Goldstone, a British PR executive, told the president’s son he was in touch with Russian businessmen who were offering to share incriminating information about Mrs Clinton received from Russian prosecutors.
- Chart below shows Clinton’s email scandal reported around this time last year. USD/JPY dropped around 6.5% in a month amid political fears.
- NOTE: Fed Janet Yellen will deliver her semi-annual testimony to Congress over these two days; her language on Fed’s policy may be a risk to the accuracy of this analysis.
Fullerton Markets Research Team
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