Market Overview

Yen Rallies as Market Sentiment Falters- Fiscal Outlook Poses Risk -David Song, Currency Analyst at DailyFX

Share:
Related EWJ
Japan, Natural Gas And NASDAQ Composite ETFs To Watch This Week
Fast Money Picks For February 20: Facebook, Raytheon, Microsoft
Japan's output soars; retails sales, inflation slows (Seeking Alpha)
Related FXY
The Biggest Surprise On Monday Wasn't Japan, Bank of England's Mark Carney, Mario Draghi Or Even David Cameron
Are Japanese ETFs Telling Of A Recession?
Germany's Outlook Is Terrible, Gold Could Be Playing Possum, And Multiple False Trends Look Good (Seeking Alpha)

The Japanese Yen rallied across the board as market sentiment faltered on Tuesday, but the low-yielding currency may struggle to hold its ground during the final days of August amid the ongoing discussion surrounding the sales-tax hike. It seems as though Japanese officials are struggling to meet on common ground amid the mixed opinions on how the new government should implement the first sales-tax hike in 15-years, and the shift in fiscal policy may dampen the appeal of the Yen as it puts additional pressure on the Bank of Japan to shore up the real economy. Indeed, BoJ Governor Haruhiko Kuroda may come under increased pressure to implement more non-standard measures over the near to medium-term, and the central bank may further embark on the easing cycle in 2014 in an effort to combat deflation."

Posted-In: News Forex Global Economics Markets

 

Related Articles (EWJ + FXY)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Benzinga PRO content