FX Daily Wrap Up
No News is Bad News….for the Yen
In a week of heavy hitting news reports, The Bank of Japan’s Governor Fukui again refused to commit to further rate hikes before the calendar year end. This time his comment was “I would not rule out any timing.” Most traders took this to mean that there would be no change in rates before the end of the year. Many experts believe that the BOJ will watch the US holiday season which is an excellent way to gauge the relative strength of US consumption. The US is Japan’s number two market and remains critical to its export led plans for growth. The net effect of Fukui’s comments in the FX markets was another loss for the Yen, as USD/JPY once again pushed back above 118.00 while EUR/JPY rose within 10 points of its all time high. The USD/JYP finished out trading the American session at 118.21 up almost 45 pips from its open. XPRESSTRADE Analyst David Hilgeman
In a week of heavy hitting news reports, The Bank of Japan’s Governor Fukui again refused to commit to further rate hikes before the calendar year end. This time his comment was “I would not rule out any timing.” Most traders took this to mean that there would be no change in rates before the end of the year. Many experts believe that the BOJ will watch the US holiday season which is an excellent way to gauge the relative strength of US consumption. The US is Japan’s number two market and remains critical to its export led plans for growth. The net effect of Fukui’s comments in the FX markets was another loss for the Yen, as USD/JPY once again pushed back above 118.00 while EUR/JPY rose within 10 points of its all time high. The USD/JYP finished out trading the American session at 118.21 up almost 45 pips from its open. XPRESSTRADE Analyst David Hilgeman
posted by XPRESSTRADE, LLC at 11/16/2006 01:27:00 PM
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