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Forex pairs in this Article » USD/JPY
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ notes that USD/JPY is still vulnerable to downside pressure, despite Emerging Markets stabilising.

Key Quotes

"The emerging market FX space remains relatively stable after decent gains yesterday and the modest recovery in US equities yesterday helped Japanese equities recover in today’s trading session. USD/JPY remains vulnerable to the downside ahead of some key economic data from the US – the ADP report today and the NFP employment report on Friday."

"The Australian dollar was the big mover yesterday, advancing by 2.0% after the signal of a shift away from an easing bias by the RBA. That degree of gain was probably worthy although we do not think the shift from the RBA is likely to fuel a sustained move to the upside."

"The message from the RBA was that the current level of the Australian dollar would help bring about more balanced growth so that message would probably change quickly if gains became more sustained. Domestic demand conditions remain weak and the terms of trade adjustment both suggest the upside for AUD/USD from here will be limited."
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