Hong Kong cancels outgoing flights as Chinese police assemble in Shenzhen
The situation in Hong Kong is getting worse as the protests have prompted the authorities to cancel flights leaving the administrative region. To add to the fear and panic, the Chinese police have assembled on the Shenzhen border with Hong Kong, in anticipation of further troubles ahead.
This has pushed the USD/CNH - offshore rate higher - and as we have seen in previous episodes, this has had a negative impact on risk sentiment with the equity futures markets across the globe turning red.
Consequently, USD/JPY has been pushed lower still, and while we expect to see support coming in ahead of 105.00, risk-off flow can make light of this so the session could get a little more lively as the day wears on. Below 105.00, we have the flash crash lows from earlier in the year, with the cross/JPY rates also under pressure - AUD/JPY heading back to the lows while EUR/JPY and GBP/JPY make fresh lows - the GBP rate earlier on in the day.