31 Jan 2014
Flash: JPY the big January winner - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that Yen has been the big winner in January.
Key Quotes
"January has seen the yen win in FX, while the Argentine Peso is the big loser. The Nikkei is the worst of the big equity indices and there is a danger that Nikkei softness fuels a little doom-loop by triggering a USD/JPY break lower."
"The last time the Nikkei was under 15k, USD/JPY was under 100. It may be back-to-front logic to trade the yen off the Nikkei, but in a risk-averse market Nikkei weakness can trigger yen strength and accentuate the 'risk off' feel. On a day when we are struggling to catch our collective breath and have a break from risk aversion, this warrants caution."
Key Quotes
"January has seen the yen win in FX, while the Argentine Peso is the big loser. The Nikkei is the worst of the big equity indices and there is a danger that Nikkei softness fuels a little doom-loop by triggering a USD/JPY break lower."
"The last time the Nikkei was under 15k, USD/JPY was under 100. It may be back-to-front logic to trade the yen off the Nikkei, but in a risk-averse market Nikkei weakness can trigger yen strength and accentuate the 'risk off' feel. On a day when we are struggling to catch our collective breath and have a break from risk aversion, this warrants caution."