Jawboning Drives FX Tuesday, September 12, 2006
Currency movements were dictated by comments from government officials in the Thursday session with the yen and the dollar reaping the rewards. Germany’s Depute Finance Minister Mirow said the upcoming G7 FinMin meeting would likely mention the recent weakness in the yen – triggering sharp appreciation in the Japanese currency against the euro overnight. Traders will also look for renewed calls for China to revalue its currency and bolster efforts to correct global imbalances.
In New York trading, the greenback gained ground against the majors – prompted by hawkish comments from San Francisco Fed President Yellen. She reiterated the FOMC’s bias toward dampening inflationary pressures and that the current trend implies further possible tightening from the Fed. The dollar bounced higher following her comments on the likelihood the FOMC may not be finished with its tightening cycle.
In New York trading, the greenback gained ground against the majors – prompted by hawkish comments from San Francisco Fed President Yellen. She reiterated the FOMC’s bias toward dampening inflationary pressures and that the current trend implies further possible tightening from the Fed. The dollar bounced higher following her comments on the likelihood the FOMC may not be finished with its tightening cycle.
Comments
0 Comments:
Post a Comment
<< Home