The dollar continues to weaken against the yen as investors expect the Fed remains cautious and do not quickly raise interest rates. Market participants and Tokyo analysts believe that the bearish trend of the greenback has been supported by investors' own choices that have continued to bet on an attitude dove from the Fed. In addition, the new recent fall in oil prices and the decline in Japanese dell'azionario (Nikkei -0.3%) have affected the market sentiment, driving up the yen demand. Last week, the chairman of the US Federal Reserve, Janet Yellen, stressed how much the slowdown in foreign economic growth poses a risk to the US economy and justifies a more gradual process of successive increases in interest rates. "I believe that the comments of Yellen" have had some influence, making the dollar a force able to lead the market, said Toshihiko Sakai, senior manager at Mitsubishi UFJ Trust and Banking.
Koji Fukaya, chief executive of the FPG Securities, however, argues that, although the market continues to be influenced by the dove tone used by Yellen, the discrepancies between the sentiment in the US and Japan do not justify a sustained decline of the cross usd / yen to below 110. it will continue to be a limit to the weakening of the US dollar and the strengthening of the Japanese currency, given the differences expected in terms of monetary policy between the central Bank of Tokyo and the Fed, says the expert.
As for other currencies, however, the cross EUR / USD continues to show an uptrend. At the time the change is at 1.1388. Again, the strength of the single currency is consequential weakening of the greenback that has not been influenced by positive economic data released Friday. Moreover, the figures on the US economy, and, in particular, sull'Ism, which showed the first expansion of the industry since last August, and the non-farm payroll, which stood above the consensus, will not alter the dove tone used by the Federal Reserve. The market remains convinced that the Fed is still worried about the fragility of the global economy and that's why the Institute does not quickly raise interest rates.



Translate to English Show original