Caution prevails as we move towards the G-7 powerhouse meeting with little seemingly unable to deter the Yen carry brigade other than the usualcaution ahead, wary of remotely unexpected announcements. It remains difficult to see a break in the range either side of 120-122 while the market remains apparently transfixed upon "what the Bank of Japan wants".
Given the activity within the U.S. Treasury market of late, it could be argued whether we have a sterilized or at least semi-pasteurized range of 120-122. That in itself begs the question if the market is in a period of remote control or being remotely controlled. Several still conclude that in the event of another G-7 damp squib we will return on the road towards USD/JPY 125 with only one seemingly interested party building a dam against market forces.
For the remainder of the day at least, we continue to reflect upon indigenous names bidding at 120.20 while offering the topside 100 points higher at 121.20, sandwiched in between are those creating the intraday volume.
No comments:
Post a Comment