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15 Apr 2013
Forex Flash: G20 meeting might mitigate JPY decline – Westpac
FXstreet.com (Barcelona) - According to Global FX Strategist Sean Callow at Westpac, “Regarding the USD/JPY, “The G20 meeting Thursday/Friday might help limit the yen decline on the week, along with potential spillover from commodity and equity weakness – lower US yields certainty don’t help.
However, Kuroda’s “big bang theory” should underpin yen decline multiweek, including a clear break of 100. Elsewhere in Asia, no news is good news in the case of North v South Korean tensions. We haven’t seen a circuit breaker yet but at the same time we haven’t seen a further escalation in tensions either.
“We betting on tensions easing and we feel a lot of bad news is priced into the KRW outlook at the moment. To express this view we have entered a short SGD/KRW position.” Callow adds.
However, Kuroda’s “big bang theory” should underpin yen decline multiweek, including a clear break of 100. Elsewhere in Asia, no news is good news in the case of North v South Korean tensions. We haven’t seen a circuit breaker yet but at the same time we haven’t seen a further escalation in tensions either.
“We betting on tensions easing and we feel a lot of bad news is priced into the KRW outlook at the moment. To express this view we have entered a short SGD/KRW position.” Callow adds.