Morgan Stanley said that compared with the Japanese yen or the euro, the British pound is more vulnerable to large-scale capital flows and its trading pattern is more similar to some currencies that are far less liquid than the yen or the euro. The bank’s currency analysts found that both the Japanese yen and European […]
Westpac Bank said that Australian pension funds increased their currency hedging on overseas stocks in the last quarter, indicating that many pension funds are closely watching for possible changes in the performance of the US dollar in the safe-haven market. Analysis shows that industry funds dominate Australia’s A$4.3 trillion (US$2.8 trillion) retirement savings system, including […]
On Tuesday, it was reported that despite political instability, Bank of Japan officials are still willing to raise interest rates again this year. Subsequently, hedge funds increased their bets on call options for the Japanese yen. Sagar Sambrani, a senior foreign exchange options trader at Nomura International in London, said, “The Bank of Japan’s statement […]
Goldman Sachs and Bank of America strategists are bullish on the Swiss franc, believing that its support against the Japanese yen is strong as the rise in political uncertainty has weakened the yen’s appeal as a safe-haven asset. Shusuke Yamada, chief Japan foreign exchange and interest rate strategist at Bank of America, wrote in a […]
The Japanese yen fell and the Japanese stock market rose after Prime Minister Shigeru Ishiba announced his intention to resign over the weekend. The yen fell 0.7% against the dollar at one point as concerns over political instability were seen as reducing the possibility of the Bank of Japan raising interest rates. The Japanese stock […]
Bond and currency traders are gearing up for Friday’s US jobs report, which will solidify views on the Federal Reserve’s policy and determine the near-term direction of interest rates. A series of weaker-than-expected economic data released this week strengthened market bets on the dovish stance of the Federal Reserve, causing the yield on 30-year US […]
Crude futures tumbled on Wednesday, reversing the previous day’s gains, as Reuters reported that the Organization of the Petroleum Exporting Countries and its allies may consider raising output again in October at a meeting on Sunday. Another boost would mean that OPEC+ would start to unwind the second tranche of production cuts, amounting to about […]
New South Wales Treasury Corp, an Australian bond issuer, said that the move to cut dollar exposure has brought benefits and it is preparing for further weakening of the US dollar. Stuart Brentnall, the chief investment officer of this Australian government investment management department, said that a few years ago, the department had shifted its […]
Gold prices hit a record high, injecting new momentum into the precious metal’s years-long rally, amid expectations of interest rate cuts by the Federal Reserve and growing concerns about the future of central banks. Spot gold rose as much as 0.9% to $3,508.73 an ounce, surpassing the previous high set in April, but gave back […]
Hedge funds have begun to bet that the yen will break out of its narrow trading range and rise against the US dollar. Data from the Chicago Mercantile Exchange shows that leveraged investors are building positions in the options market. If the yen breaks out of its current narrow trading range of around 147 against […]