See what's driving the bid and ask in the forex market with the daily "Morning Currency Wrap". Keep up to date with the geopolitical events that are on a trader's mind. Learn about the current trading themes and occasionally pick up a trade call.
It look like intervention to me. Japanese government officials declined to comment on whether Prime Minister Naoto Kan's administration had intervened in the currency market today after the Yen slid against the USD in Tokyo trading. “I won’t comment” on intervention, Finance Minister Yoshihiko Noda told reporters in Tokyo. Vice Finance Minister Fumihiko Igarashi earlier said that he hadn’t heard of any intervention, and a separate government official, speaking on condition of anonymity, declined to comment to reporters when asked whether Japan had sold Yen. Plausible deniability is a great tactic - it keep traders on their toes and it helps Japan keep a low profile at a time when currency manipulation is hot topic among other countries.
USD-Yen at around 84.50 is a natural level for Japan to step in and this will happen from time to time as part of the BOJ's intervention campaign, says Thomas Harr, head of Asia FX strategy at Standard Chartered. He talks to CNBC's Chloe Cho and Maithreyi Seetharaman.
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