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15 Dec 2014
Heightened global growth concerns lifting yen – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, notes that heightened investor concerns over the global growth outlook led Yen to rebound in the near term after the USD/JPY pair fell below the 118 level.
Key Quotes
“The yen has continued to strengthen modestly in the Asian trading session with USD/JPY briefly falling below the 118.00-level. The yen is rebounding in the near-term alongside more risk-averse trading conditions which are being triggered by heightened investor concerns over the outlook for global growth heading into year-end.”
“The sharp ongoing slide in the price of crude oil is reinforcing global growth concerns in the near-term weighing on risk assets. Investors are also concerned that the Fed will adopt a less dovish outlook for monetary policy at the upcoming FOMC meeting on the 17th December.”
“It has been speculated that the Fed could soften its forward rates guidance by dropping the statement that it will keep rates low for a “considerable” time after the end of QE. The Indonesian rupiah which as one of the original fragile five currencies seen as most sensitive to tighter Fed monetary policy has weakened sharply overnight after breaking above the 12,500-level for the first-time since late 2008. Even the Indian rupee which is as one of the main beneficiaries of the lower of price of crude oil is beginning to display more signs of weakness.”
Key Quotes
“The yen has continued to strengthen modestly in the Asian trading session with USD/JPY briefly falling below the 118.00-level. The yen is rebounding in the near-term alongside more risk-averse trading conditions which are being triggered by heightened investor concerns over the outlook for global growth heading into year-end.”
“The sharp ongoing slide in the price of crude oil is reinforcing global growth concerns in the near-term weighing on risk assets. Investors are also concerned that the Fed will adopt a less dovish outlook for monetary policy at the upcoming FOMC meeting on the 17th December.”
“It has been speculated that the Fed could soften its forward rates guidance by dropping the statement that it will keep rates low for a “considerable” time after the end of QE. The Indonesian rupiah which as one of the original fragile five currencies seen as most sensitive to tighter Fed monetary policy has weakened sharply overnight after breaking above the 12,500-level for the first-time since late 2008. Even the Indian rupee which is as one of the main beneficiaries of the lower of price of crude oil is beginning to display more signs of weakness.”