13 May 2014
Strong Yen may have turned the corner - RBS
FXStreet (Bali) - Greg Gibbs, FX Trading Strategist at RBS, shared his thoughts on current market conditions, noting that the Yen may suffer from further losses, while the Pound may see its strength resuming.
Key Quotes
"Strong metals prices and resource equities belie fears of a slowing in China's property sector. The market remains hopeful that Chinese authorities will sustain growth."
"Indian equities have surged by over 5% since Thursday and exit polls suggest Modi will lead with an outright majority. This is likely to keep INR well supported and test RBI resolve to hold it down."
"USD is stronger against the JPY and steady vs. other majors, perhaps turning the corner after recent broad-based weakness, which may shift the focus to other majors as potential funding currencies for high-beta investments (JPY and EUR may appear better funding options at this time)."
"GBP may resume its rally later this week if there are no major surprises on Wednesday with its yield advantage over other majors hitting new cyclical peaks."
Key Quotes
"Strong metals prices and resource equities belie fears of a slowing in China's property sector. The market remains hopeful that Chinese authorities will sustain growth."
"Indian equities have surged by over 5% since Thursday and exit polls suggest Modi will lead with an outright majority. This is likely to keep INR well supported and test RBI resolve to hold it down."
"USD is stronger against the JPY and steady vs. other majors, perhaps turning the corner after recent broad-based weakness, which may shift the focus to other majors as potential funding currencies for high-beta investments (JPY and EUR may appear better funding options at this time)."
"GBP may resume its rally later this week if there are no major surprises on Wednesday with its yield advantage over other majors hitting new cyclical peaks."