Greg on the yen:
For positive! A really speedy transfer certainly. If the yen weakened at such a tempo Japanese authorities could be bashing the newwires with jawboning about how such speedy strikes are not any fascinating. However, nope, nothing from them these previous days.
Through Deutsche Financial institution:
- The yen has drawn help on the again of rising hypothesis that the
Financial institution of Japan (BOJ) may tweak its YCC coverage at its assembly later in
the month.
RBC, however disagree, saying the beneficial properties in yen are doubtless as a result of unwinding of prolonged shorts, with IMM positions lengthy USD/JPY hitting their most prolonged in 5 years. RBS says its this, not a possible Financial institution of Japan coverage tweak behind the current bounce for the yen.
I strongly disagree with RBC. For positive, the stretched positioning has performed a task, however the catalyst is as DB factors out, hypothesis of BOJ tweak on the July assembly. I wrote about this a few weeks in the past:
