Dollar Yen Soars

The dollar rose 0.3 percent to 113.62 yen as of 12:38 p.m. in Tokyo, after reaching 113.90, the highest since March 15.

The odds that the Fed will tighten at its December meeting are 100 percent, with the probability of additional moves by June climbing to 64 percent from 58 percent at the start of this week.

The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, was little changed after closing Thursday at its highest in data compiled by Bloomberg starting in December 2004. The measure has risen 5 percent since Trump won the Nov. 8 U.S. presidential election.

A gauge of whether asset-price movements have gone too far, too fast is signaling the greenback’s rally maybe overdone. The 14-day relative strength index has risen above the 70 threshold for 12 days, indicating a reversal.

“Dollar-yen continues to be the more favorable currency pair to express a U.S. dollar strengthening bias,” said Stephen Innes, a senior trader at Oanda Corp. in Singapore. “Price action suggests markets still under positioned dollar, as any sell-offs are shallow and running into a wall of buyers.”

Bloomberg

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.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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