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29 Dec 2014
Nikkei / Yen correlation remains strong - SG
FXStreet (Guatemala) - Kit Juckes Global Head of Currency Strategy at Societe Generale noted that it's 25 years today, since the Nikkei peaked at 38,957 on 29 December 1989.
Key Quotes:
“The Nikkei has wobbled this morning and the correlation with USD/JPY remains strong enough for the FX market to stall”.
“But the news remains depressing for the yen, as real wage growth hits a low since 2009 (real cash earnings -4.3% y/y in November)”.
“It's really hard to see anything changing in the Japanese economic or policy outlook for 2015 - more Abenomics is the only medicine on offer and it it's going to work, it will only do so slowly”.
Key Quotes:
“The Nikkei has wobbled this morning and the correlation with USD/JPY remains strong enough for the FX market to stall”.
“But the news remains depressing for the yen, as real wage growth hits a low since 2009 (real cash earnings -4.3% y/y in November)”.
“It's really hard to see anything changing in the Japanese economic or policy outlook for 2015 - more Abenomics is the only medicine on offer and it it's going to work, it will only do so slowly”.