Posts Tagged ‘ Japan ’

Euro Rebounds Off Lows, Hung Parliament Pressures Pound

After one of the most volatile sessions in history in yesterday’s North American trade, risk FX saw a rebound in Asian and early European dealing aided by a massive 2 trillion yen infusion from the Bank of Japan and growing confidence that Germany will approve the bailout package to Greece allaying fears of bankruptcy for [ READ MORE ]

Dollar: Will Policymakers Act?

Although the volatility in the financial markets yesterday was largely attributed to a trading error, the fear was not an illusion. Despite the better than expected U.S. labor market numbers, the approval of a Greek bailout package by Germany and massive liquidity injection into the short term money markets by the Bank of Japan, [ READ MORE ]

Yen Strengthens on More Hawkish BOJ

A more upbeat and hawkish message from BOJ chief Masaaki Shirakawa send USD/JPY below the 93.00 figure in late Asian trade today. Mr. Shirakawa said that concerns about double dip recession have dissipated as economic activity is picking up. Last week the economy watcher sentiment survey reached its highest level in nearly three [ READ MORE ]

Japanese Yen: Will We See Intervention?

The Japanese yen has fallen 5% against the Dollar over the last month, and 10% since touching a record high in November. Since this certainly isn’t explainable in the context of the EU debt crisis, what’s going on?! The primary factor behind the Yen’s decline appears to be seasonal, given the “end of the Japanese fiscal [ READ MORE ]

Forget about Greece: What about the US, Japan, and the UK?

Forget about Greece: What about the US, Japan, and the UK? Almost 75% of trading in the forex markets involves some combination of the US Dollar, Euro, Japanese Yen, and British Pound. This figure rises to more than 95% when you include trading in which at least one of the currencies (as opposed to both) [ READ MORE ]

Fed Rate Hike Still Distant

Analysts and Fed-watchers have been speculating for almost half a year about the possibility of a Federal Funds Rate (FFR) hike. With each prognostication of a rate hike comes a flurry of market activity, followed by an invariable ebb, as investors accept that the Fed will hold the FFR at 0% until at least its [ READ MORE ]

Chinese Yuan Controversy Heats Up

Over the last couple weeks, rising expectations of a resumed appreciation of the Chinese Yuan (RMB) have brought heightened tension. Politicians, economists, and even newspaper columnists are finding themselves involved in increasingly bitter disputes over the issue. What’s more, the debate has regressed; whereas before it was a foregone conclusion that China would soon lift the [ READ MORE ]

Euro Holds 1.3500 For Now

With Japan closed for spring equinox day and the economic calendar in Europe absolutely barren the currency market was extremely quite on the first trading day of the week. The news that the UMP party of French President Nicolas Sarkozy lost badly in the regional elections, put pressure on the euro in the late [ READ MORE ]

Dollar Returns to Favor as World’s Reserve Currency

Rumor has it that the Dollar is about to make a run. As the credit crisis slowly subsides, (currency) investors are once again looking at the long-term, and they like what they see when it comes to the Dollar. For those that care to remember, 2008 was a great year for the Dollar, as the credit [ READ MORE ]

Australia Hikes Rates; How about the Carry Trade?

Following up on my last post, I want to use this post to write about the long side of the carry trade- specifically the Australian Dollar. The Bank of International Settlements (BIS) observed in a recent report that, “The role of short-term interest rate differentials in both the deprecations and their reversal has grown over [ READ MORE ]

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