25 Jun 2014
JPY gathers steam - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, remarks today's strength around the JPY.
Key Quotes
"The yen has strengthened modestly in the Asian trading reflecting more risk-averse trading conditions as weakness in US equities overnight has spilled over into Asian equity markets. It has resulted in USD/JPY falling back below the 102.00-level after the US dollar failed to hold onto modest gains yesterday following the release of further evidence that the US economy is rebounding strongly in Q2."
"It was revealed yesterday that US new homes sales surged by 18.6% in May reaching their highest level since May 2008. It follows a more modest pick up in existing home sales in May as well which are both providing some reassurance that the recent slowdown in the US housing market maybe coming to an end."
"The Conference Board’s survey also revealed that consumer confidence increased for the third consecutive month in June. However, the stronger than expected reports have had only a limited impact at lifting US yields and the US dollar."
"The two-year Treasury bond yield has increased towards 0.5% while the ten-year Treasury bond yield has remained below 2.6%. The Fed’s dovish monetary policy stance is helping to dampen upside potential for US yields and the US dollar in the near-term."
Key Quotes
"The yen has strengthened modestly in the Asian trading reflecting more risk-averse trading conditions as weakness in US equities overnight has spilled over into Asian equity markets. It has resulted in USD/JPY falling back below the 102.00-level after the US dollar failed to hold onto modest gains yesterday following the release of further evidence that the US economy is rebounding strongly in Q2."
"It was revealed yesterday that US new homes sales surged by 18.6% in May reaching their highest level since May 2008. It follows a more modest pick up in existing home sales in May as well which are both providing some reassurance that the recent slowdown in the US housing market maybe coming to an end."
"The Conference Board’s survey also revealed that consumer confidence increased for the third consecutive month in June. However, the stronger than expected reports have had only a limited impact at lifting US yields and the US dollar."
"The two-year Treasury bond yield has increased towards 0.5% while the ten-year Treasury bond yield has remained below 2.6%. The Fed’s dovish monetary policy stance is helping to dampen upside potential for US yields and the US dollar in the near-term."