Yen under pressure amid speculative testing – ING
The Japanese Yen (JPY) faces continued pressure as geopolitical tensions over Taiwan and speculative trading test authorities’ tolerance, with potential Bank of Japan intervention looming during the thin Thanksgiving week, ING's FX analyst Francesco Pesole notes.
Trump-Xi call fuels Taiwan-related risk for JPY
"The standout in G10 remains the yen, which continues to face speculative testing of Japanese authorities’ tolerance. Reports that the Trump-Xi call included a discussion on Taiwan yesterday isn’t helping JPY either."
"The diplomatic rift between Japan and China concerning Taiwan persists, and markets are adding some risk premium on the yen based on the potential economic fallout of Beijing’s retaliatory measures."
"Thinner liquidity around Thanksgiving could present good conditions for the BoJ to intervene in USD/JPY, ideally after a market-driven correction in the pair."
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.
Recommended Articles
