Japan

A number of sources are reporting that the Chinese have been loading up on JGBs despite their relatively low yields. Is this a flight to quality by the Chinese central bank? Andy Lees of UBS shows that the magnitude of the purchases…

Highlights US dollar was mostly firmer vs. the majors as the risk off trading environment carried over from last week, albeit in thin holiday trading.  Yen and Swiss franc were largely firmer, while EM FX was mixed.  Biggest…

Highlights The US dollar is broadly higher, alongside the Japanese yen, amid heightened anxiety over the possible stalling of the global economic recovery and the fragility of the banking system.  The euro has borne the brunt of…

I was recently contacted by Adam Kritzer who is a lead editor on Forexblog which is arguably the best one stop resource for people interested in FX (trading) and the importance of foreign exchange in general. He asked me whether I would…

Highlights The US dollar is modestly lower against the major and emerging market currencies.  The key driver is really the absence of bad news and some position adjusting in the wake of stronger commodity and equity…

Highlights The US dollar was mostly softer vs. the majors, but EUR/USD was sidelined for a day as the yen was the big mover on political uncertainty (see below).  We believe the euro bear trend remains intact, but that the pace of…

The yen is drifting lower in the North American morning.  If at first in response to the resignation of Prime Minister Hatoyama the yen was sold on political uncertainty, it may be being sold because of uncertainty appears to be…

Highlights The US dollar is little changed against most of the European currencies and within the dollar-bloc as a consolidative phase is emerging.  The yen is center stage today following the resignation of Japan’s prime…

Highlights The US dollar is broadly weaker today as is the Japanese yen as the latest bout of market anxiety eases.  News that China indicated that it is not planning on selling its European bond holdings helped the euro recover…

Japan's DPJ government has been forced to back down on its campaign pledge regarding the moving of the US Marine Corp base in Okinawa.  Prime Minister Hatayama's retreat may come at a high political cost.  It appears to have…