Free Trial

Tuesday saw USD/JPY stage a..............>

DOLLAR-YEN
DOLLAR-YEN: Tuesday saw USD/JPY stage a spectacular recovery, ignited by
promising remarks re: stimulus measures from U.S. Pres Trump/Tsy Sec Mnuchin.
The rally ran out of steam in EU hours & the rate eased off ahead of the WMR fix
as reports from U.S. press talked down the odds of an imminent stimulus package.
Subsequent rebound took USD/JPY to new daily highs, before a modest correction.
- The pullback from Tuesday's peak has been extended into today's Asia session.
The rate has softened alongside U.S. equity futs and now trades -61 pips at
Y105.03. Continued worry about Covid-19 evident, with mkts probably somewhat
disappointed w/fairly inconsequential briefing from Pres Trump re: stimulus.
- The round figure of Y105 briefly gave way, bears keep an eye on Tuesday's low
of Y102.02. A breach of Tuesday's peak at Y105.92 is needed to give bulls a
fresh impetus & bring the Mar 6 high of Y106.34 into play.
- Locally, Kyodo reported that the BoJ considers expanding its ETF purchasing
programme, a little after the Bank revealed Y101.4bn worth of ETF purchases on
Tues. Elsewhere, a Japanese off'l told WSJ that the Tokyo Olympics would be
delayed if they can't go ahead in 2020.

To read the full story

Close

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.