JPY

  • 02 May @ 07:42

    Genuinely positive stories on the economic front are relatively rare these days, with no fewer than ten of the EU’s 27 economies in recession and Australia’s central bank forced to cut rates by 50bp yesterday in part because the non-mining economy is contracting. Thankfully, both Germany and America continue to defy the global gloom. In…

  • 19 Apr @ 11:02

    Sterling’s good fortune, Italian growth woes and the defensive yen are
    today’s topics with Michael Derks, Chief Strategist.

  • 19 Apr @ 07:23

    Of the major currencies it has been the proud pound that has been leading the way so far this year. Following yesterday’s less dovish MPC Minutes and the surprisingly strong employment figures, cable is back through 1.60 once more and EUR/GBP is at a 20mth low of 0.8180. Against the Japanese yen the pound has…

  • 18 Apr @ 11:26

    Michael Derks, Chief Strategist, takes a look at the performance of
    sterling after the release of the MPC’s latest minutes, the euro and
    Spanish housing data and the softening yen.

  • 10 Apr @ 07:34

    In the wake of the US jobs numbers on Friday, which saw the dollar softer as QE3 talk was once again re-ignited, the dollar has continued south, although only modestly so, the dollar index down around a further 0.2% in the aftermath of the release. In sum, the weaker headline payrolls data should be put…

  • 02 Apr @ 07:14

    Spain’s new government has announced spending cuts and tax increases worth an estimated EUR 27bn in an endeavour to reduce the gaping fiscal shortfall from 8.5% of GDP at the end of last year to 5.3% by December 31st. Most of the pain is being absorbed by departmental spending – all ministries are to reduce…

  • 30 Mar @ 15:29

    In the run-up to the end of the financial year, the Japanese currency has strengthened slightly. USD/JPY, which ten days ago was threatening the 84.0 level, fell below 82.0 for a time overnight. Part of the explanation for the turnaround lies with profit-repatriation flows by Japanese companies that frequently occur around this time of the…

  • 30 Mar @ 15:19

    Last week’s warning from the International Energy Agency (IEA) that the surging cost of oil now represented a bigger risk for global growth than the European sovereign debt and banking crisis did not generate the publicity it deserved. Brent crude has jumped by 17% this year to USD 126 a barrel, essentially matching the high…

  • 30 Mar @ 11:03

    Spain’s budget announcement, month-end yen flows and the euro are
    today’s topics with Michael Derks, Chief Strategist

  • 23 Mar @ 08:53

    The US currency is only 0.5% below the opening level of the year, looking at the DXY dollar index and has been on a rising trend for most of the week. Whilst there are concerns with the turn in peripheral bond markets and the softer tone to equities this week, the FX markets have been…

  • 22 Mar @ 08:02

    Throughout this week China has been a talking point for markets, acting as a cooling breeze on risk trades. Initially, it was reports from BHP of the prospect of softening iron ore demand, but it remains in focus thanks to the softening of the latest PMI data overnight, showing the manufacturing series down to 48.1,…

  • 16 Mar @ 08:26

    For once, markets are approaching the end of the week in a relative state of calm. Oil prices have eased around 4% from the highs seen earlier in the month, global equities have more than recovered from the modest correction and the sell-off in higher yielding currencies (Brazil and Australia, among others) has stabilised, at…

  • 15 Mar @ 16:01

    One of the reasons why we are seeing such notable shifts in FX is the changing interest rate picture that has emerged this month. Just this week, US 2Y yields have risen from 0.30% to 0.40%, which in a near zero-rate world is a fairly significant move. We’ve seen a similar move in UK rates,…

  • 15 Mar @ 10:44

    The yen, sterling and Fitch’s negative outlook on the UK are today’s topics with Simon Smith, Chief Economist

  • 15 Mar @ 08:19

    The yen is off some 1.8% vs. the dollar so far this week, with USD/JPY touching an 11mth high in recent days. There have been been a lot of changes in FX dynamics so far this month (see below), of which the yen has been just one. The better tone to US data has certainly…

  • 14 Mar @ 19:14

    We’ve seen a stark shift in FX markets so far this month, a telling indication of both valuations and risk appetite. That Greece has avoided default, the ECB has thrown more 3Y money into the pot and the US has continued to put in solid performances has had a notable effect on markets. Yesterday the…

  • 14 Mar @ 08:11

    The US Federal Reserve pulled off a difficult balancing act last night, sounding both more upbeat on the economy, but also keeping open the option of further easing measures and maintaining the commitment to keep rates low until the end of 2014. The expectation of growth was altered from “modest” to “moderate”, a seemingly small…

  • 09 Mar @ 08:20

    Greece announced the details of the largest sovereign debt restructuring in history this morning, with private sector bond-holders finally recognising that the deal on the table was probably a much better one than they were likely to get by holding out. According to a statement from the Greek government, the participation rate of investors in…

  • 07 Mar @ 08:14

    Risk assets really struggled yesterday as both investors and traders decided it was prudent to cash in some chips after a stellar first two months of the year. European equities were off by around 2-3% on the day, treasury yields declined, high-beta currencies beat a hasty retreat and both the dollar and the Japanese yen…

  • 06 Mar @ 13:25

    USD/JPY is now crumbling after nearly three weeks of unrelenting gains, which were in part triggered by the BoJ’s move to further expand its balance sheet and also formally introduce an inflation target. But that was not the only driver of the move. As we noted last month, it was supported by the widening of…