Subject revive the global economy continues to create a favorable background in the financial markets, however, while the incoming data signal that growth in economic activity in Japan remains stable, Managing Director Bank of New York Mellon Michael Woolfolk said that they also show to maintain sustained deflationary pressures, supporting the growth of negative sentiment on the yen. The latter, meanwhile, has another major reason for weakening: Woolfolk drew attention to the fact that the dynamics of the yen and the available data on capital flows point to the continued interest of Japanese investors for foreign assets. According to him, what could be seen in the last few days is probably the beginning of a long and intensive process of capital outflows from Japan and the yen is likely to be the weakest of the currencies of the G7 in this quarter. In BNYM believe that the dollar / yen is poised to reach levels near Y95/Y96, but it is believed that a more active growth (for Y100) in this quarter can be expected. According to Woolfolk, the preferred strategy now is to sell the yen against the U.S. dollar, while also interested in such pairs as AUD / JPY and CAD / JPY.
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