Market Overview

Christopher Vecchio, Currency Analyst at DailyFX, Comments on the Japanese Yen

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"Risk appetite has improved in the overnight with high beta currencies and riskier assets finding firming footing in the wake of Japanese Finance Minister Taro Aso's commentary that the current policies being implemented by Japan have been deemed acceptable by the G20. The USDJPY, accordingly, has made a reinvigorated push back towards the psychologically significant ¥100.00 exchange rate (though the NZDJPY is the top performer, up nearly +2% on the day).

The commentary from Mr. Aso seems to be the catalyst as sentiment the past several days was gearing towards the G20 releasing a statement of condemnation regarding Japan's aggressively easy fiscal and monetary policies. But now that the G20 has essentially approved the policies of arch-doves Shinzo Abe and Haruhiko Kuroda, there stands little in the way of the next leg of Yen weakness (barring significant risk-off conditions evolving out of Europe, for example)."

Posted-In: News Forex Global Economics Markets

 

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