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12 Mar 2013
Forex Flash: Majors retrace post NFP dip - OCBC Bank
Emmanuel Ng of OCBC Bank notes that the majors partially retraced higher against the dollar on Monday in NY following their earlier slump on Fri in the wake of the US nonfarm numbers.
Beginning with the Antipodens, he notes that the led the pack higher amid background growth optimism while USD/JPY also continued to drift higher with risk appetite levels still relatively sanguine. Looking ahead, Ng notes that with news flow relatively quiet, dovish JPY headlines are likely to keep investors focused on the JPY-crosses and the USD/JPY with the latter above 96.50 in early trade. Notably, he writes, “the fresh stream of dovish rhetoric from officials and increasing market chatter of renewed efforts to increase monetary stimulus is expected to continue to bury the yen.”
Beginning with the Antipodens, he notes that the led the pack higher amid background growth optimism while USD/JPY also continued to drift higher with risk appetite levels still relatively sanguine. Looking ahead, Ng notes that with news flow relatively quiet, dovish JPY headlines are likely to keep investors focused on the JPY-crosses and the USD/JPY with the latter above 96.50 in early trade. Notably, he writes, “the fresh stream of dovish rhetoric from officials and increasing market chatter of renewed efforts to increase monetary stimulus is expected to continue to bury the yen.”