Back
3 Apr 2014
USD/JPY continues its march higher - BTMU
FXStreet (Barcelona) -Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, notes de continuation of JPY depreciation is favouring the USD/JPY.
Key Quotes
"The yen has continued to weaken modestly in the Asian trading session with USD/JPY rising back above the 104.00-level. The yen’s gains recorded earlier in the year driven by external concerns over slowing economic growth in the US and China, and heightened geopolitical risk related to developments in the Ukraine are in the process of being reversed."
"The release of the stronger ADP employment report yesterday provided further evidence that the US economy is rebounding following the weather-related slowdown early this year. The ADP report revealed that the private sector added 191k jobs in March supporting investor expectations that the non-farm payrolls report released on Friday may reveal that the US economy added just over 200k jobs in March lowering the unemployment rate further."
"So far US yields have remained relatively stable although upside risk are clearly rising which should help to support the US dollar. Portfolio flows from Japan have also recently been less supportive for yen weakness. The release of the latest weekly securities report revealed that Japanese investors continued to sell foreign bonds heading into fiscal year end totalling a net JPY763.6 billion in the week ending the 28th March."
Key Quotes
"The yen has continued to weaken modestly in the Asian trading session with USD/JPY rising back above the 104.00-level. The yen’s gains recorded earlier in the year driven by external concerns over slowing economic growth in the US and China, and heightened geopolitical risk related to developments in the Ukraine are in the process of being reversed."
"The release of the stronger ADP employment report yesterday provided further evidence that the US economy is rebounding following the weather-related slowdown early this year. The ADP report revealed that the private sector added 191k jobs in March supporting investor expectations that the non-farm payrolls report released on Friday may reveal that the US economy added just over 200k jobs in March lowering the unemployment rate further."
"So far US yields have remained relatively stable although upside risk are clearly rising which should help to support the US dollar. Portfolio flows from Japan have also recently been less supportive for yen weakness. The release of the latest weekly securities report revealed that Japanese investors continued to sell foreign bonds heading into fiscal year end totalling a net JPY763.6 billion in the week ending the 28th March."