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3 Sep 2015
EUR/JPY rangebound around 135-136 in the near term – Rabobank
FXStreet (Edinburgh) - According to Jane Foley, Senior Currency Strategist at Rabobank, the cross could be poised for a consolidative pattern in the near term.
Key Quotes
“The yen has a long standing reputation as a safe haven currency”.
“The euro does not and, with the coherence of EMU having been questioned by the crisis and by Grexit fears, the status of a safe haven would not sit comfortably”.
“That said, the euro has been displaying safe haven behaviour in recent weeks”.
“We attribute this to aggressive short covering in recent weeks following the euro’s use as a funding currency at the start of the year”.
“The fact that the eurozone has a very sizeable current account surplus has most likely played a part in directing flows out of and then back into the single currency this year”.
“In the latter part of August, the euro outperformed the Japanese yen. However, now that the initial rush of short-covering has taken effect, there is diminished likelihood that the downtrend in EUR/JPY will be extended”.
“We expect EUR/JPY to stabilise in the 135-136 area in the coming weeks”.
Key Quotes
“The yen has a long standing reputation as a safe haven currency”.
“The euro does not and, with the coherence of EMU having been questioned by the crisis and by Grexit fears, the status of a safe haven would not sit comfortably”.
“That said, the euro has been displaying safe haven behaviour in recent weeks”.
“We attribute this to aggressive short covering in recent weeks following the euro’s use as a funding currency at the start of the year”.
“The fact that the eurozone has a very sizeable current account surplus has most likely played a part in directing flows out of and then back into the single currency this year”.
“In the latter part of August, the euro outperformed the Japanese yen. However, now that the initial rush of short-covering has taken effect, there is diminished likelihood that the downtrend in EUR/JPY will be extended”.
“We expect EUR/JPY to stabilise in the 135-136 area in the coming weeks”.