Week in FX Asia – Abe’s Cohorts Will Stand In The Way Of A Rising Yen

So far it seems that hedge funds have been well positioned to profit from the yen’s move, while real-money investors have mostly missed out on this ‘outright’ 15% decline over the last three months and a 25% fall against the EUR since the summer.

The real-investor seems to have been too hung up on the EUR and its periphery concerns. The fact that the yen crosses remain under pressure, despite the BoJ falling somewhat short of expectations earlier this week, is strong proof that the Central Bank really does like yen at 100.

Recent Japanese government comments only serve to remind us the relentless single-minded drive by Abe’s cohorts to pursue a weaker currency policy to resuscitate their floundering economy. Japan is “closely monitoring developments in the currency market” and indicated that “appropriate action” would be taken if the currency resumed it’s strengthening tend!

 

WEEK AHEAD

* USD Gross Domestic Product Annualized
* USD Fed Interest Rate Decision
* USD Fed’s Monetary Policy Statement and press conference
* NZD Monetary Policy Statement
* NZD RBNZ Interest Rate Decision
* EUR Consumer Price Index
* EUR Harmonised Index of Consumer Prices
* USD Core Personal Consumption Expenditure – Prices Index
* USD Nonfarm Payrolls
* USD Unemployment Rate

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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Dean Popplewell

Dean Popplewell

Vice-President of Currency Analysis and Research at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell
Dean Popplewell

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