Quote of the Day:

Derek Halpenny

  • There is no more obvious way to play interest rate differentials than buying dollaryen.
  • One subject he may tackle is that maybe short-term rates need to be that bit higher.
  • Given that the employment report will be released on Friday, the appetite for selling the dollar may be limited especially with the consensus for non-farm payrolls gradually creeping higher from the original reading of 200,000.
  • Fukui has said nothing new, he has pretty much repeated what the market already knows and hasn't changed the timing of a shift on quantitative easing.
  • Given the rhetoric we've seen from the government today, the pressure, beyond moving away from quantitative easing will be very, very much on the BOJ to maintain a zero interest rate structure.
  • His number one objective will be to stress continuity. Continuity means more interest rate increases, so that means the dollar can keep going up.
  • I think it's inevitable that Governor Fukui will indicate we're that bit closer to the end of quantitative easing but I still think the message will be one of relative caution.
  • I think the fact that every time we've gone below 114 yen (on dollaryen) we've bounced back higher, is beginning to become a bit of a concern for those playing the short-term market by trying to push dollar-yen lower.
  • Overall sentiment hasn't changed significantly, obviously we've had a reversal and the selling has ceased temporarily... But the strength of the dollar has been relatively modest.
  • Rising oil and gasoline prices are negative for the dollar.