Alvin Tan

There has been a moderation in risk aversion with European stocks and Wall Street stock futures in the green. That has seen the yen give up some of its recent gains, u.S. payrolls will be the focus, but I doubt it will change the current debate over whether the Federal Reserve will hike rates in the near term or not.

There's quite a lot of scepticism in the market as to whether this fiscal package can change anything. Japan has already tried this a number of times and everyone knows it's not really as big as the headline figure suggests, what was exciting over the past month was the potential for monetary policy to act in coordination with the fiscal measures and we were definitely disappointed on that front last week. Coordination still seems a good way off.

There's quite a lot of skepticism in the market as to whether this fiscal package can change anything.

The Chinese measures haven't really restored confidence. The market turmoil is not over. And under such risk averse condition, the yen and the euro will continue to be supported, in the short term, the dollar is likely to underperform the euro and the yen. We also expect the Fed to be very cautious about raising rates.

The Chinese measures haven't really restored confidence. The market turmoil is not over. And under such risk averse conditions, the yen and the euro will continue to be supported, in the short term, the dollar is likely to underperform the euro and the yen. We also expect the Fed to be very cautious about raising rates.