The US money will find it tough to get ground, although the dollar will probably aim to procure some relief by some covering of short dollar positions. The money is likely whether there's a contested election outcome or a Kerry victory, to fortify. The Japanese stance on intervention will become clearer following the US election, however, it's not likely that there'll be dollar purchasing over the 105.0 degree. The dollar will fight to push over the 107.5 degree against the yen with medium-term pressures and regional tendencies resulting in a more powerful Japanese money.
The dollar kept a milder tone Europe on Tuesday with a transfer to 106.6 as short dollar positions were coated. The yen should be offered a few service by oil prices and a Nikkei rally was to a high on Tuesday that should encourage funds inflows.
The US election outcome will be important. The result is whether there's a success for Kerry or an outcome with speculation that the government will push for a dollar in Asia that the yen will strengthen. The dollar will be prone whether there's a definite triumph for Bush, to rally.
The remarks from officials will probably be closely watched following the election. Though there will be caution in case of a Kerry victory since the government won't wish to provoke a response, there will be a greater willingness to intervene. There's a probability that the Japanese will make the most of the US transition to push the dollar more powerful, but there seems a movement improbable.
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