Yen retreat is short lived
As global stock markets consolidated yesterday, the Yen weakened alongside a break in the closing of the carry trades that caused the recent week long rally in the Japanese currency.
Wall street stocks were one of the major beneficiaries enjoying their largest single day gains since back last July despite Greenspan’s comments that their was a ‘one third probability’ of a US recession.
This morning though has been another story which has seen a return to investor’s nervousness and the Yen gaining against the Dollar plus other majors as shares in Tokyo took a dip.
This has reignited investor’s jittery fears especially those tied up in riskier assets. With little data out in the US today apart from the Fed’s Beige Book the currency market will look to global equity moves for signs of direction.
Some analysts are citing support in the Yen being a result of Japanese companies moving money back into the country for their end of fiscal year on 31st March.
Q4 US worker productivity data out yesterday was revised down indicating price pressures may make the Fed wary of cutting interest rates despite the concerns about the growth outlook.
Analysts will look to the US Non farm payrolls due on Friday (13.30 GMT) for further guidance of the economy’s health and to see if the tighter labour force was keeping inflation a risk.
If market volatility winds down today the focus will return to interest rates decisions on Thursday given the European Central Bank is expected to raise rates to 3.75 percent (12.45pm GMT). Most analysts expect Bank of England to hold rates steady at 5.25 percent (12.00 GMT).
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Wall street stocks were one of the major beneficiaries enjoying their largest single day gains since back last July despite Greenspan’s comments that their was a ‘one third probability’ of a US recession.
This morning though has been another story which has seen a return to investor’s nervousness and the Yen gaining against the Dollar plus other majors as shares in Tokyo took a dip.
This has reignited investor’s jittery fears especially those tied up in riskier assets. With little data out in the US today apart from the Fed’s Beige Book the currency market will look to global equity moves for signs of direction.
Some analysts are citing support in the Yen being a result of Japanese companies moving money back into the country for their end of fiscal year on 31st March.
Q4 US worker productivity data out yesterday was revised down indicating price pressures may make the Fed wary of cutting interest rates despite the concerns about the growth outlook.
Analysts will look to the US Non farm payrolls due on Friday (13.30 GMT) for further guidance of the economy’s health and to see if the tighter labour force was keeping inflation a risk.
If market volatility winds down today the focus will return to interest rates decisions on Thursday given the European Central Bank is expected to raise rates to 3.75 percent (12.45pm GMT). Most analysts expect Bank of England to hold rates steady at 5.25 percent (12.00 GMT).
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: Bank of England, ECB, Greenspan, Yen
posted by Drs Search @ 2:00 PM
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