John Kyriakopoulos
John Kyriakopoulos
added bond carry further japanese perception rose today trades yields
It's more of the same, with the perception that carry trades are being unwound, and that Japanese bond yields rose further today probably added to that trend.
average bridge cents close far moving nine past provided sell
Around 75 cents is the sell zone, which is close to the 100-day moving average which provided a bridge too far over the past nine months.
australian bank bias dollar fed mild pushing reserve shift support
The Reserve Bank may shift to a very mild tightening bias which won't be enough to support the Australian dollar while the Fed is pushing up rates.
appetite bond bounce conclude economy foreign investors japanese proves purchases rising scenario stronger subdued yields
There is typically a bounce in such purchases and if this proves subdued this year, many investors will conclude that a stronger Japanese economy and rising bond yields has moderated Japanese investor appetite for foreign assets. This scenario would see the yen a lot firmer.
dollar euro fed half okay tough year
It will be a tough first half of the year for the U.S. dollar with the Fed peaking with rates. The euro will do okay in the first half on expectations the ECB will tighten rates.
australian commodity continued positive price
The commodity price story has continued to be positive for the Australian dollar.
cannot clearly correction data dollar downward driven fed near outlook policy term
The outlook for the Fed policy is clearly data dependent. I cannot see much downward correction to the U.S. dollar over the near term being driven by the data.
advantage continue fed percent therefore yield
The Fed is still going to 5 percent and therefore Australia's yield advantage will continue to narrow.
against downside economy euro fragile increases interest looks protect rate short solid sometime support term
While a hawkish sounding ECB will protect the downside for the euro in the short term -- support looks solid back to 1.2050 -- the fragile euro-zone economy argues against any interest rate increases for sometime to come.
believe easing happen market meeting momentous today
Today's BOJ meeting is a momentous event. The end of quantitative easing is near. The market doesn't necessarily believe it will happen today, but if it doesn't happen today it will be April.