Yen Still Well Bid in Early Session (Opening Comment)

OPENING COMMENT

The mart is display whatever signs of reversing in the primeval hebdomad with every of the major currencies pulling backwards against the buck, with the omission of the Yen. The Yen was aggressively effort on weekday with the mart collapsing into the modify 90.00’s ahead of the stylish minor bounce. Price action in the Yen has been quite engrossing with the single nowness breaking away from any old correlations with US equities. Instead, it has been the USD that has emerged of New as the attractive funding nowness on compelling yield differentials. On the day, the Yen is the strongest currency, while Kiwi lags, with the antipodean reversing off of its past 2009 highs meet unsure of 0.7100 from Friday. The imperfectness in Kiwi today does not become as a shock, after the much weaker retail sales data and earlier comments from RBNZ Governor Bollard who had expressed anxiety over the appreciation in the New Zealand Dollar. With the Yen capableness and pullback in currencies today, the Yen crosses should also be watched closely, as they hit been coming low pressure as well. Asian equities are tracking modify on the day, in response to Friday’s bearish close in US stocks, while commodities are also offered. Looking ahead, Swiss shaper and goods prices (0.1% expected) are due at 7:15GMT, with Eurozone employment and industrial production (-0.2% expected) at 9:00GMT.  

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com If you wish to obtain Joel's reports in a more timely fashion, e-mail jskruger@fxcm.com and you module be additional to the "distribution" list.

 

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