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27 Mar 2015
JPY to show some strength – ANZ
FXStreet (Barcelona) - Richard Yetsenga, Global Head of Financial Markets Research at ANZ, comments that USD correction might be short-lived, but rising global growth concerns suggests that JPY might remain a favoured play against the Dollar or on the crosses.
Key Quotes
“We expect the current USD correction to be relatively short-lived. The Fed’s recent shift shouldn’t have been that much of a surprise, vulnerabilities in EM are likely to continue to surface as USD liquidity tightens, China is a source of downside economic and financial risks, and hedging activity remains dollar supportive.”
“In the near term, AUD, GBP, MYR, SGD, and IDR remain vulnerable even if the USD weakens a bit further in the short term, while the JPY is likely to show some strength, on the crosses or against the USD.”
“The JPY remains a favoured play given the risk that concerns about the strength of the global economy become more broad-based.”
Key Quotes
“We expect the current USD correction to be relatively short-lived. The Fed’s recent shift shouldn’t have been that much of a surprise, vulnerabilities in EM are likely to continue to surface as USD liquidity tightens, China is a source of downside economic and financial risks, and hedging activity remains dollar supportive.”
“In the near term, AUD, GBP, MYR, SGD, and IDR remain vulnerable even if the USD weakens a bit further in the short term, while the JPY is likely to show some strength, on the crosses or against the USD.”
“The JPY remains a favoured play given the risk that concerns about the strength of the global economy become more broad-based.”