OctaFX | OctaFX Forex Broker
Open trading account

Flash: BoJ fallout, six weeks in the making – UBS

FXstreet.com (Barcelona) - It is now six weeks since BoJ Governor Kuroda announced a new program of monetary easing, and still the JGB market remains unsettled.

According to Gareth Berry, a Research Analyst at UBS, “One benign interpretation of the turbulence is that liquidity has dried up and so JGB price action should be disregarded given the allegedly small volumes involved – however, that interpretation has just been laid to rest.”

The Japan Securities Dealers Association reported this week that JGB turnover in April hit an 11-month high. As an engineer might put it, this price action is signal not noise. Many FX participants observe these JGB gyrations with a sense of detached bewilderment - a reasonable stance given the USD/JPY spot has so far shown little interest in the JGB market and continues to march higher regardless. However, “we think a more active approach to JGB surveillance by FX investors is now warranted.” Berry adds.

EUR/USD returns to 1.2860/65

After the short-lived attempt to follow through 1.2890, sellers have now kicked down the euro back to the 1.2860.65 area...
Read more Previous

USD/CAD in highs around 1.0250

Well, nothing seems to stop the greenback on its way up, as demonstrated by the fifth session in positive figures out of the last seven, or climbing from near parity levels to today’s tops around 1.0250...
Read more Next
Start livechat