Traders have not yet identified the buyers but report aggressive buying ahead of 117.00 that has seen some players pare shorts for a bounce back to 117.27. Some dealers suspect possible Asian buying with Japanese importer demand still reported on dips lower as well. USD/JPY is testing 117.30 again, aided by US stocks gains with the DJIA up 32 pts.
Dealers also feel that the housing numbers today were very positive for the USD and are also dismissing some media speculation that the Fed will be dovish this week on subprime and housing concerns. Traders see the Fed reiterating a hawkish stance on inflation after data last week and the inflation spike seen in Canadian and UK data today.
Traders are now hearing that the USD/JPY collapse may be due to one of the "usual suspects" and not the China news or subprime rumors. Traders are now hearing that Russia once again dumped GBP/JPY after the overnight gains for the fall in the cross from 230.75 to level around 229.00. The cross has bounced back to 229.65.
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