yr peak as BOJ move fizzles
economic worries seen keeping investors away from risk assets such as high yielding Canada Goose online currencies, the market is likely to Canada Goose Jackets push up the low yielding yen, which could eventually prompt Japan to sell canada goose coats its currency in the markets for canada goose clearance sale the first time in more than six years.
they intervene today? No. But markets will become more nervous if the yen approaches 80 yen (to the dollar), said Etsuko Yamashita, chief economist uk canada goose outlet at Sumitomo Mitsui Banking Corp. economic data due this week pushes the yen higher, Japan may indeed intervene, she said. On top of closely cheap canada goose uk watched jobs numbers Canada Goose Coats On Sale on Friday, there is cheap Canada Goose housing price data on Tuesday and manufacturing data on Wednesday.
Traders said any Japanese intervention is likely to be a unilateral action, given the perception that neither the United States nor Europe would be keen to buy canada goose jacket cheap help boost the value of their own currencies in light of weakness in their economies.
Japanese Finance Minister Yoshihiko Noda repeated on Tuesday that the canada goose uk shop government would take decisive action on currencies usually seen as code for intervention when necessary.
But reaction in the market was limited. TREASURIES The canada goose greenback fell nearly 2.6 percent against the Japanese Canada Goose Parka currency this month after sliding 2.2 percent in July buy canada goose jacket and around 3 percent each in June and May.
As the dollar/yen rate has had a strong correlation in recent Canada Goose sale months with the yield gap Canada Goose Outlet between the canada goose uk outlet United States and Japan, a sharp fall in Treasury yields on Monday also weighed on the canada goose outlet dollar.
Treasury prices jumped on Monday, with 30 year bond prices rising two full points, recovering from a sharp sell off on Friday.
In addition, the yen could face potential uk canada goose buyback pressure in cross yen trades such as euro/yen and Aussie/yen, which have attracted some interest because of their larger yield differentials.
stop losses for Japanese margin traders are expected to be triggered when the Australian dollar falls below canada goose uk black friday 75 yen, said a trader canada goose coats on sale at a Japanese brokerage.
Japanese retail margin traders boosted their combined net long position in dollar/yen and six cross/yen pairs by 53,138 canada goose black friday sale contracts, or 13 percent, to canada goose clearance 461,456 contracts on Monday, according to Tokyo Financial Exchange data. This boosted their combined net long positions in seven major currencies against the yen near a record canadian goose jacket high of 508,101 lots marked on Aug. 24.
If the yen keeps strengthening, margin traders will sooner or later be forced to dump their heavy bets against the Japanese currency, possibly adding momentum to its rise.
In another sign of investor risk aversion, the euro slumped to a record low against https://www.gestiontb.ca the safe haven Swiss franc on heavy selling by emerging market players.
The euro fell as low as 1.2934 franc EURCHF=R, down 0.4 percent on the day.
The Canada Goose Online euro fell 0.5 percent against the yen to 106.65 yen EURJPY=R, crawling towards a nine year low of 105.44 yen hit last week.
Against the dollar, the euro was little changed on the day at $1.2659
It is expected to find some support around $1.2605, a 50 percent retracement canada goose store of the euro rally from June to early August, and at a low of $1.2588 hit a week ago, although a break below these levels could set off a fresh downward trend.
Some traders said recent rises in spreads of sovereign CDS in some euro zone countries, such as Ireland and Italy, were rekindling fears about the euro zone debt problems, which pushed canada goose factory sale the single currency to a four year low earlier this year.