Rate hike expectations for June have disappeared. And while the focus has shifted to July, we expect the dollar to be rather subdued this week, with not much of economic data out of the U.S..

Yujiro Goto

Categorized in : Company News

We are also seeing not much pressure from the Japanese government on the BOJ to ease. All this is helping the yen.

The Chinese data is helping risk sentiment, overall, we have had some good headlines this week, like more political stability in the UK, expectations of more Japanese stimulus and all these are contributing to investors selling the yen.

With Chinese markets shrugging off the MSCI move, risk appetite is slightly better than what we saw in the past few days. But markets are wary before the Fed meeting and the Bank of Japan meeting tomorrow and of course the Brexit worries.

Clearly risk sentiment is not good and oil prices are declining this week and ...feeding and driving the dollar lower against the yen.

The weekend comment from Draghi was a bit more balanced and neutral than before, which is triggering some short-covering in the euro.

The U.S. jobs data was a disappointment and postpones expectations of a lift-off by the end of this year which is not dollar positive.

The drop in the Greek stock market has put the euro under slight... by Yujiro Goto

The drop in the Greek stock market has put the euro under slight pressure.

Honda's comments reflect the latest view of the government and come ahead of a proposed visit by Abe to the United States in April, they might not want the yen to weaken too much ahead of the visit. So in the short term the yen's weakness could slow, but over the medium term it will still weaken.