9 Jul 2014
JPY extends the resiliency - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, underlines the solid tone of the Japanese currency.
Key Quotes
"The yen has held on to its recent gains in the Asian trading session supported by more risk-averse trading conditions in the near-term. A modest sell off is underway in global equities in part reflecting investor concerns over the increased risk of earlier monetary tightening from the Fed following the release last week of the stronger than expected US employment report."
"The pick up in risk aversion has resulted in long-term US yields and the US dollar falling back modestly in the near-term although short-term US yields remain close to their recent highs. The release yesterday of the latest JOLTS report provided further evidence that the US labour market continues to heal revealing that job openings have nearly returned to their previous cyclical peak from March 2007. It is a further sign that the US labour market is tightening which is likely to lead to higher earnings growth ahead which is seen as the missing trigger to prompt the Fed to begin raising rates."
Key Quotes
"The yen has held on to its recent gains in the Asian trading session supported by more risk-averse trading conditions in the near-term. A modest sell off is underway in global equities in part reflecting investor concerns over the increased risk of earlier monetary tightening from the Fed following the release last week of the stronger than expected US employment report."
"The pick up in risk aversion has resulted in long-term US yields and the US dollar falling back modestly in the near-term although short-term US yields remain close to their recent highs. The release yesterday of the latest JOLTS report provided further evidence that the US labour market continues to heal revealing that job openings have nearly returned to their previous cyclical peak from March 2007. It is a further sign that the US labour market is tightening which is likely to lead to higher earnings growth ahead which is seen as the missing trigger to prompt the Fed to begin raising rates."