The sharp dollar markup will dissuade near-term yen purchasing, however, the US money is still very likely to hit demanding selling pressure round the 105.0 level, particularly as exporter selling increases. The inherent capital flows must stay yen optimistic, but will likely not justify accelerated yen profits and there'll be strong buck support on any new sale down to 102.5.
The dollar pushed over the 104.0 amount as the US money procured a prevalent correction. The dollar extended gains into a top of 104.8 prior to a retreat back to 104.5, however the dollar afterward left an obstacle on 105.0. The yen remained more powerful than 140.0 from the Euro. The US money will find it challenging to secure buying interest, although advertising pressure will be deterred by the dollar profits.
The leaks during the upcoming few months should be supportive of their yen, and this might suppress the momentum towards stronger currencies, although there'll be issues that the market could slow in 2005 in case the electronics industry stinks.
There's not been any indiion of activities to allow the yuan appreciate at the central bank assembly. Whether this position is continuing, the yen may be diminished as speculation will last though a significant effect is not likely.
Reply With Quote
