Morning Bid: Yen at Work
Markets bet the Bank of Japan will raise rates next week after stronger GDP and wages, sending the yen higher and Tokyo stocks lower.
- On Monday and Tuesday, the Japanese yen reached its strongest levels since February as markets brace for an almost certain BOJ interest rate increase next week.
- China's exports surged 25% year-on-year in August, lifting its global trade surplus to $119 billion while its surplus with America reached $29 billion.
- Canada's retaliatory tariffs on goods from America took effect on Tuesday, intensifying trade tensions, while oil prices grind toward $100 per barrel after Iran pledged "economic warfare."
- Tokyo's benchmark Nikkei index recoiled almost 2% on Tuesday as global markets grew nervous about yen appreciation and potential carry trade ripple effects.
- Strong employment data for America in August supports arguments for additional interest rate increases this month, potentially including further hikes at the Federal Reserve to prevent economic overheating.
11 Articles
11 Articles
Sterling Gains Against Dollar as Yen Rebound Overshadows UK Policy Speech
The pound edged higher against the dollar and held broadly steady against the euro on Monday, but fell sharply against the Japanese yen as markets weighed Britain’s economic policy outlook against a broader shift in global interest rates and risk sentiment. Sterling rose 0.14% to $1.3573 and traded at 85.86 pence per euro, leaving it […]
Yen Gains Strength Amid Global Rate Rise Talk
Global markets experienced a jolt this week, marked by a significant surge in Japan’s yen to its strongest level since February. This move appears to be driven by market repositioning ahead of an anticipated interest rate rise from the Bank The post Yen Gains Strength Amid Global Rate Rise Talk first appeared on Sharecafe.
The Japanese yen reached its strongest level since February, but slowed its advance as the dollar and U.S. Treasury yields regained ground. Oil pressure, expectations of the Bank of Japan and upcoming U.S. inflation data will define the course of currencies.
The yen’s surge should force a portfolio review for all investors
The yen is closing in on its strongest level this year, a move that demands every global investor revisit their portfolio given how far-reaching the impact of this currency swing could be, warns the CEO of deVere Group. The comments from Nigel Green come as the yen surged to 152.89 per dollar, its strongest level […]
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