The probability of JPY-selling intervention by Japanese authorities is low at the moment despite growing market expectations for such steps, Citibank Japan chief FX strategist Osamu Takashima says in a note; news that the Group of Seven finance ministers are having a teleconference later in the global day might have accelerated JPY-selling amid speculation of some new measures. "We think, however, the likelihood of yen-selling intervention is low in the immediate future," he says; "rather, swelling yen-short positions on expectations for intervention could end up strengthening the yen if risk-averse conditions continue and those positions are unwound." There is no particular signs of change in market conditions, Takashima says, adding that the downside risk toward 76.00 remains. The USD/JPY is at 78.32.
Find us on Google+
No comments:
Post a Comment