United States  

“News neutrality by unbiased coverage”
One News Page
> >

JPY: Idiosyncratic stock market correction having limited spillover effects - ING

FXstreet.com Friday, 12 October 2018
"While USD/JPY did come off its 114.00/50 highs this week - partly as US yields topped out and partly as US stocks corrected - the cross-asset correlations haven't been telling of anything fundamentally untoward," ING analysts point out.

*Key quotes*

"Indeed, we saw in February 2018 that a spike in the VIX index had a limited impact overall on USD/JPY - and there's an air of 'deja vu' when it comes to price action this. We suspect short JPY unwinds have probably been the main reason for the 2 big figure move lower in the pair - and in absence of any sustained stock market sell-off next week, USD/JPY could well stabilise in the 112-113 range."

"The Japanese calendar sees Sep national CPI data (Fri) - with markets looking for the core (ex-food) CPI release to marginally tick up to 1.0% YoY. Although with the BoJ's preferred core-core CPI print still expected to stay rooted at 0.4% YoY, we doubt there'll be much of a reaction in JGB yields or the yen. All of this does, however, precede an important BoJ meeting later in the month - so also watch out for activity data in the week ahead (capacity utilization, industrial production, trade). As our economists have noted, the Japanese economy is not in bad shape."
0
shares
ShareTweetSavePostSend
 

You Might Like


Tweets about this


Other recent news in Markets

AUSTRALIA: National Transport Insurance Partners on Blockchain for Food Safety TrialCHINESE Central Bank Governor Defines STOs as ‘Illegal Financial Activity in China’
Hodler’s Digest, Dec. 3-Dec.9: US SEC Delays BTC ETF Decision Again, While Nasdaq Confirms 2019 BTC Futures LAUNCHUK’s Johnson: PM Theresa May should renegotiate BREXIT deal if loses vote in parliament
Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2018 One News Page Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  Contact us  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? Send us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest