One Word... Yen
Tweet Send to a Friend
With all the action in the commodities market this week, traders are overlooking an interesting development in the currency markets. The U.S. dollar is set to post its biggest weekly gain against Japan's currency in four months. Additionally, the yen weakened against all 16 major currencies. Nomura analysts say the Yen's decline is tied to a bill before Japanese lawmakers in the lower house who are prepared to vote to double sales tax.
"There may be some overseas investors reacting to political uncertainty over the tax debate and concern about a possible downgrade of Japan’s credit rating," Yunosuke Ikeda, head of Japan foreign-exchange research at Nomura Securities Co wrote in a note to clients today.
Keep an eye on USD/JPY and CurrencyShares Japanese Yen Trust (NYSE: FXY) in the coming days as they might signal an additional breakdown in Yen.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
"There may be some overseas investors reacting to political uncertainty over the tax debate and concern about a possible downgrade of Japan’s credit rating," Yunosuke Ikeda, head of Japan foreign-exchange research at Nomura Securities Co wrote in a note to clients today.
Keep an eye on USD/JPY and CurrencyShares Japanese Yen Trust (NYSE: FXY) in the coming days as they might signal an additional breakdown in Yen.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- FOMC Maintains $85B Bond Buying Plan
- HSBC Slashes China Growth Outlook for FY13, FY14; Cites Refocus on Supply Reforms
- IMF cuts U.S. FY14 growth outlook from 3.0% to 2.7% in April
Create E-mail Alert Related Categories
ETFs, ForexRelated Entities
Nomura
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
