Forex Flash: JPY meltdown as EUR scuttles higher – OCBC Bank
FXstreet.com (Barcelona) - Emannuel Ng of OCBC Bank notes that the JPY flamed out against majors on Thursday while the EUR took a different route and strengthen across the G10 space, leaving other majors mixed against the dollar.
He notes that the JPY saw renewed weakness on reports indicating possible BoJ measures to further loosen the monetary accommodation spignot and with the Economics Minister back peddling on his prior comments against excessive JPY weakness. Elsewhere, Ng sees that the drop in US initial claims and housing starts also helped facilitate a higher USDJPY (as US yield ticked higher). On other fronts, NZDUSD stumbled on a surprise contraction in 4Q inflation on a quarterly basis. Looking ahead, he feels that the recent drive higher in EURCHF, above 1.2450, points to a deflation of underlying Eurozone debt funding concerns in the current environment.
He notes that the JPY saw renewed weakness on reports indicating possible BoJ measures to further loosen the monetary accommodation spignot and with the Economics Minister back peddling on his prior comments against excessive JPY weakness. Elsewhere, Ng sees that the drop in US initial claims and housing starts also helped facilitate a higher USDJPY (as US yield ticked higher). On other fronts, NZDUSD stumbled on a surprise contraction in 4Q inflation on a quarterly basis. Looking ahead, he feels that the recent drive higher in EURCHF, above 1.2450, points to a deflation of underlying Eurozone debt funding concerns in the current environment.
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