Wednesday saw the Japanese yen advance against the world’s reserve currency amid beliefs the central bank is falling short of spurring the world’s third-largest economy with its easing programs, according to Bloomberg.
Marking a third-straight day of gains, the yen has climbed roughly 2 percent against the U.S. dollar thus far this week. New Prime Minister Shinzo Abe, whose calls for easing have been loud and clear since before he was elected last month, is preparing to name new officials at the central bank, two deputy governors in March and a new governor in April.
“The BOJ meeting was marginally disappointing so there is a bit of profit-taking going on,” currency strategist Geoff Kendrick with Nomura told Reuters on Wednesday. “Our view is that we will get stuck below 90 yen but probably go no lower than 87 until we get more news, which will not come out until we find out who the new (BOJ) governor is.”
The three days of gains for the yen against the dollar this week are the longest rally since the end of this past November.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.