Certainly Japanese data has been of no help and until and unless global growth slows down to such an extent that market foresees no additional rate hikes from the G-7 universe, the yen appears to be in a free fall. It?s difficult to say what will bring the bid back into the yen at this point. Trading in the yen even decoupled from the usual risk aversion dynamics as market participants shrugged off the overnight decline in Chinese stocks. In short all of the optimism on Monday was stamped out by Friday, with traders coming to the conclusion that rates in Japan will remain stationary for the foreseeable future. However, as the week progressed the economic news from Japan grew more dreary, With labor cash earnings registering their fifth consecutive month of contraction. Yen bulls started the week on a promising note as employment and spending data showed improvement. Yen at Week?s Lows as Dollar Awaits a Torrent of Dataĭespite the more than 2% decline in Shanghai the yen continued to flounder ahead of the NFP report today, as carry trade pressure saw no signs of abating. Euro: German retail sales better but treads water.Japanese Yen: At lows of the week despite decline in Shanghai
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