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12 Jun 2013
Flash: JPY was the mover of the day - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that the JPY was the mover of the day after S&P raised the rating outlook of the US from negative to stable with the USD/JPY also testing briefly above 99.00.
He adds that earlier in the day, the N225 was cheered by better than expected 1Q 13 GDP numbers, which also imparted an upward gradient on the pair. Elsewhere, apart from the AUD’s shakiness, he sees that the majors managed to eke out minor gain on the greenback. Notably, Ng comments that the Fed’s Bullard noted that low inflation in the US implies that the Fed can persist with QE if warranted. For today, he comments that the BOJ meeting will likely be in focus amid some background expectations that the central bank may extend its fixed rate lending duration to two years from one year currently to temper interest rate volatility. He writes, “Any disappointment on this front may provide a near term cap for the USD/JPY.”
He adds that earlier in the day, the N225 was cheered by better than expected 1Q 13 GDP numbers, which also imparted an upward gradient on the pair. Elsewhere, apart from the AUD’s shakiness, he sees that the majors managed to eke out minor gain on the greenback. Notably, Ng comments that the Fed’s Bullard noted that low inflation in the US implies that the Fed can persist with QE if warranted. For today, he comments that the BOJ meeting will likely be in focus amid some background expectations that the central bank may extend its fixed rate lending duration to two years from one year currently to temper interest rate volatility. He writes, “Any disappointment on this front may provide a near term cap for the USD/JPY.”