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Yen Crosses Slide Despite Stock Market Rally

Thursday, 01 May 2008 22:15:10 GMT

Written by Kathy Lien, Chief Strategist

With the exception of USD/JPY, all of the Japanese Yen crosses sold off.

The relationship between US stocks and carry trades appear to have broken thanks to stronger Japanese economic data. Both labor cash earnings and vehicle sales were increased from the prior month.  However it remains to be seen whether this strength can continue since inflation is expected to take a big toll on Japanese consumer demand.

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