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28 May 2013
Flash: Yen corrections continue to be shallow - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale note that the yen's corrections continue to be shallow affairs relative to the size of the currency's fall since last Autumn.
He adds that Mr Kuroda expressed a relaxed view of the JGB yield rise, an Abe advisor suggested the BoJ would go on easing, nerves were calmed and here we are. He write, “I would rank my relative degrees of confidence as 1) very confident in further yen weakness, 2) very confident JGB yields will go higher in due course, 3) confident the Nikkei will rise further but suspicious for now that we may see a more choppy/trendless trading pattern for a few weeks or months and 4) hopeful but not sure that all this turns in positive feedback loops for the economy above the sentiment improvement we have seen so far.”
He adds that Mr Kuroda expressed a relaxed view of the JGB yield rise, an Abe advisor suggested the BoJ would go on easing, nerves were calmed and here we are. He write, “I would rank my relative degrees of confidence as 1) very confident in further yen weakness, 2) very confident JGB yields will go higher in due course, 3) confident the Nikkei will rise further but suspicious for now that we may see a more choppy/trendless trading pattern for a few weeks or months and 4) hopeful but not sure that all this turns in positive feedback loops for the economy above the sentiment improvement we have seen so far.”