Market Overview

Week in FX Asia – Abe's Cohorts Will Stand In The Way Of A Rising Yen

So far it seems that hedge funds have been well positioned to profit from the yen's move, while real-money investors have mostly missed out on this ‘outright' 15% decline over the last three months and a 25% fall against the EUR since the summer.

The real-investor seems to have been too hung up on the EUR and its periphery concerns. The fact that the yen crosses remain under pressure, despite the BoJ falling somewhat short of expectations earlier this week, is strong proof that the Central Bank really does like yen at 100.

Recent Japanese government comments only serve to remind us the relentless single-minded drive by Abe's cohorts to pursue a weaker currency policy to resuscitate their floundering economy. Japan is “closely monitoring developments in the currency market” and indicated that “appropriate action” would be taken if the currency resumed it's strengthening tend!

 

Yen Surges to Near 91 after...

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: News Forex Global Economics Markets Trading Ideas

 

Related Articles

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters