The USD/JPY is trading in risk aversion mode. G7 leaders and EU Finance Ministers are meeting in Tokyo along with the IMF and World Bank to discuss the current global economic situation. Side meetings are also scheduled to discuss the continue stress to the Japanese economy caused by the strength of the JPY. The USD and JPY are both picking up momentum as they are beginning to be the favored safe havens as markets turn to risk off assets. Global growth and debt continues to weigh heavily on investors’ minds along with the worsening slowdown in China. This morning Japan reported a drop in household confidence and Core Machinery orders which worsens the Japanese economic situation.
In addition, the USD / JPY is too low can also have an impact globally. JPY is too high will cause difficulties for the Japanese to export, in the long run this will lead to a trade deficit and will affect Asia regional basis.
In addition, the USD / JPY is too low can also have an impact globally. JPY is too high will cause difficulties for the Japanese to export, in the long run this will lead to a trade deficit and will affect Asia regional basis.
0 comment(s):
Post a Comment