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2 Apr 2014
US recovery bolstering USD/JPY - BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, notes the US economic recovery would be behind the USD/JPY upside.
Key Quotes
"The foreign exchange market was broadly stable during the Asian trading session with little in the way of market-moving news. With the ECB monetary policy meeting tomorrow and then the key employment report on Friday, the appetite for taking positions is probably low."
"Where there has been most movement in the last day is in USD/JPY. The market does appear to be gradually becoming more confident on the US economy as the data slowly improves and this is encouraging USD/JPY higher in line with a widening of short-term yield spreads."
"Bar a brief spike last year during the QE taper scare, the 2-year US-Japan swap spread is at its highest since December 2011. With real yields in Japan turning more negative, these widening spreads should encourage increased capital outflows."
Key Quotes
"The foreign exchange market was broadly stable during the Asian trading session with little in the way of market-moving news. With the ECB monetary policy meeting tomorrow and then the key employment report on Friday, the appetite for taking positions is probably low."
"Where there has been most movement in the last day is in USD/JPY. The market does appear to be gradually becoming more confident on the US economy as the data slowly improves and this is encouraging USD/JPY higher in line with a widening of short-term yield spreads."
"Bar a brief spike last year during the QE taper scare, the 2-year US-Japan swap spread is at its highest since December 2011. With real yields in Japan turning more negative, these widening spreads should encourage increased capital outflows."