We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Heads Up:🇰🇷 Consumer Confidence due at 21:00 GMT (15min) Previous: 70.8 https://www.dailyfx.com/economic-calendar#2020-05-25
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.50% Gold: -0.32% Silver: -0.55% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/kxAE18eIBf
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.43%, while traders in US 500 are at opposite extremes with 77.46%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/lmh68Zio6T
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.31% Germany 30: 0.24% FTSE 100: 0.09% US 500: 0.00% Wall Street: -0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/yYNbl2JFoG
  • The anti-risk US Dollar and Japanese Yen edged higher at the expense of the growth-anchored Australian and New Zealand Dollars as US equity futures pointed lower at the start of Asia trade. Get your $GBPUSD market update from @ZabelinDimitri here: https://t.co/eUY9y46j98 https://t.co/Aj3mxhsnDy
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.50% Gold: -0.32% Silver: -0.55% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Rrzzjyfqmz
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.44%, while traders in US 500 are at opposite extremes with 77.37%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/jjChVG5cqm
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 1.28% Wall Street: 1.15% France 40: 0.15% Germany 30: 0.08% FTSE 100: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/vL9MgyBJF5
  • As risk sentiment takes a turn lower, high-beta currencies such as the Australian Dollar has been among the underperformers. Get your $AUDUSD market update from @JMcQueenFX here: https://t.co/nXadRykouT https://t.co/szzQ0PKNR2
  • Heads Up:🇨🇦 BoC Gov Poloz Speech due at 17:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-05-25
Japanese Yen: G20 and GDP May Temporarily Hold Abe’s Ambitions

Japanese Yen: G20 and GDP May Temporarily Hold Abe’s Ambitions

2013-02-08 02:15:00
Renee Mu, Currency Analyst
Share:
Japanese_Yen_G20_and_GDP_May_Temporarily_Hold_Abes_Ambitions_body_Picture_1.png, Japanese Yen: G20 and GDP May Temporarily Hold Abe’s Ambitions

Japanese Yen: G20 and GDP May Temporarily Hold Abe’s Ambitions

Fundamental Forecast for Japanese Yen: Bearish

The Japanese Yen retraced to 92.74 against its US counterparty on Friday’s close - lower than last Friday’s close - as Japanese Finance Minister Taro Aso said the pace of the Yen’s slide may have been too rapid. These comments – inconsistent to the theme Japanese officials have maintained - likely comes in recognition of the upcoming G20 meeting scheduled on February 15 to 16 in the coming week. The concerted effort of weakening the Yen has spurred serious criticism abroad. Such effort to manipulate the currency to boost the country’s own economy is believed by many to be an explicit shot fired in a more explicit currency war. Perhaps this is a means for the Japanese government to win some points with foreign finance ministers and central bank governors. Regardless, the USDJPY pair’s unfavorable close brings to a close a record breaking 12-week rally. A first step to a bigger turn?.

Traders should recognize that Aso’s comments are likely to be only short-term moverswhich do not provide any structural fundamental change. Japan’s Prime Minister Shinzo Abe is determined to apply an aggressive monetary easing policy to stimulus domestic economy. Furthermore, the accelerated retirement of BoJ Governor Shirawaka - announced this past week - is a clear indication that boosting competitiveness by driving down the Yen is an irreversible objective. Abe’s choice of new BOJ chief, no matter who he is, will likely put a more dovish policy in place through both an accelerated adoption and escalated scale future stimulus efforts.

Bold promises and actions by the Japanese government do, however, have positive impact on the country’s economy. Investors confidence in exports has swelled and anticipation of a nearer end to two decades of deflation is gaining traction. In order to keep the current optimism on Japan’s market, Abe has to carry out further monetary or fiscal policies to strengthen economy via an unpopular objective of weakening the Yen. If the BoJ would actually move up its introduction of its 13 trillion yen per month stimulus effort from January 2014 to sometime this year, the Japanese currency may very well revive its plunge and break to new two year lows.

Another factor to account for is risk appetite trends. US equity indexes have maintained their drive and broken to levels not seen since the financial crisis. Given the implications to general risk sentiment, if the stock market started to make a serious move lower, all the Yen crosses would very likely drop on carry unwind and profit-taking. AUDJPY and those pairings with the greatest yield differential would likely suffer the most; but given the distance the yen has moved, all yen crosses would undoubtedly suffer in such a scenario.

Looking into next week, besides the G-20 meeting, the Japanese 4Q Gross Domestic Product (GDP) report may prove another top driver to the Yen’s gain through the short-term if the readings come in as or better-than-expected. The medium forecast of economists surveyed by Bloomberg News calls for a rise of 0.1 percent in fourth quarter following a drop of 0.9 percent in last period. Traders may enter long the USDJPY pair after it retraces to a reasonable level such as 90 as in the longer period the Yen still have depreciation pressure from Japanese government. -RM

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.