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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CROSS ASSET
The turnaround in USDJPY from near 152 to near 147 (a 3% move), with speculation of official intervention rampant but very much unconfirmed.
- There is some speculation as well that the move is related to the FX fix, and not intervention.
- Either way, there is a decided lack of major cross-market movement (see chart), apart from some Asian FX gains in sympathy.
- EURUSD for instance has weakened only slightly, so it's not a broad dollar move, though gold is starting to respond higher. And global equities are unmoved as well.
- So it doesn't look like a violent carry trade unwind behind the move, for instance.
- Of course the lack of US Treasury movement (following the rally earlier in the session) also suggests that if this is intervention, it's not being carried out via cash Treasury sales.
Intraday USDJPY, 10Y US Tsy Yield, Spot Gold, S&P FuturesSource: BBG, MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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