29 May 2014
JPY strengthening with yields – BTMU
FXStreet (Edinburgh) - Lee Hardman, Currency Analyst at BTMU, notes the JPY is gaining momentum following yield differentials.
Key Quotes
“The yen has continued to strengthen modestly in the Asian trading session deriving support from narrowing yield differentials between overseas and Japan”.
“Yields overseas declined sharply yesterday after key technical support levels were broken as the US 10-year Treasury bond yield declined below 2.50%”.
“The decline in overseas yields has been one of the main trends so far in financial markets during 2014 which has derived further momentum in the near-term on the back of investor expectations of further monetary easing from the ECB at next week’s policy meeting”.
“The yen has been one of the beneficiaries of falling yields alongside emerging market currencies as investor concerns over external financing have eased”.
Key Quotes
“The yen has continued to strengthen modestly in the Asian trading session deriving support from narrowing yield differentials between overseas and Japan”.
“Yields overseas declined sharply yesterday after key technical support levels were broken as the US 10-year Treasury bond yield declined below 2.50%”.
“The decline in overseas yields has been one of the main trends so far in financial markets during 2014 which has derived further momentum in the near-term on the back of investor expectations of further monetary easing from the ECB at next week’s policy meeting”.
“The yen has been one of the beneficiaries of falling yields alongside emerging market currencies as investor concerns over external financing have eased”.