Thread: MORNING BRIEFING: USD/JPY at 15-year low as PM Kan wins vote

MORNING BRIEFING: USD/JPY at 15-year low as PM Kan wins vote

What’s new:
Forex: New 15-year low for dollar versus yen after Japanese PM Kan wins vote
Global Markets: Asian stocks extend global rally, Nikkei edged lower on yen
Japan: Prime Minister Naoto Kan wins ruling party leadership contest
China: Yuan reaches new high as China is seen under pressure
United Kingdom: Sharp drop in House Prices
New Zealand: Weak retail sales figures, 4-month low versus Aussie  

Today:


Asian Rates & Indices:
EURUSD: 1.2909 - 1.2844.
USDCHF: 1.0087 - 1.0008.
GBPUSD: 1.5431 - 1.5348.
EURJPY: 107.85 – 106.98.
USDJPY: 83.75 – 83.09.
DowJones: 10'544.13 +0.78%
NASDAQ: 2'285.71 +1.93%
S & P 500: 1'121.90 +1.11%
Nikkei: 9’299.31 -0.24%
Shanghai: 2'680.71 -0.28%
Gold: $ 1'252.00
Crude Oil: $ 77.11

Comments:

The yen increased to fresh 15-year high versus the dollar on Tuesday following Japan's prime minister Naoto Kan’ victory in Japan's ruling party leadership contest.

Japan's Nikkei stock average fell from a three-week closing peak recorded on Monday as the yen hit a fresh 15-year high against the dollar, but recent upbeat sentiment sparked by encouraging US and China data remained intact.

The benchmark Nikkei fell 0.24 percent to 9,299.31 after rising 0.9 percent on Monday to its highest close since August 19th.

The greenback was at a 15-year low of 83.25 yen before the vote, pressured by a fall in US bond yields as well as selling in cross/yen pairs such as AUD/JPY. It briefly fell to about 83.09 yen on the vote, but is now trading around 83.25. Against the Swiss franc, the dollar fell to a 9-month low as investors pulled back from riskier currencies and poured funds into low-yielding currencies such as the yen and the franc after receiving mixed signals about whether it is the right time to shift out of havens and buy back riskier, higher-yielding assets.

The dollar fell to 1.0008 against the franc, the lowest since December last year. The Swiss currency is currently up 0.49 percent against the greenback at 1.0025, while against the euro it is up 0.38 percent at 1.2931 after reaching 1.2890 earlier.

Good Day,

Emman Xuereb
Trading Desk
RTFX Ltd
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