27 May 2014
Risk sentiment is helping USD/JPY upside - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, sees the risk sentiment is weighing on the JPY.
Key Quotes
"The yen has weakened modestly in the Asia trading session with USD/JPY rising back towards the 102.00-level. Yen weakness reflects the ongoing improvement in global investor risk sentiment as evident by the MSCI World Equity index rising to a new record high yesterday."
"Investor concerns over geopolitical tensions related to developments in the Ukraine have continued to ease after the presidential election over the weekend. Leading candidate Petro Poroshenko won as expected amidst a high voter turnout although it was heavily constrained in the Donetsk and Lugansk regions."
"Russia has issued a cautious endorsement of the election outcome. Both Foreign Minister Sergei Lavrov and Head of the Presidential Administration Sergei Ivanov have stated that Russia would “respect the will of the Ukrainian people” and is ready for dialogue with Ukrainian President Poroshenko."
"A meeting is expected to take place between Ukrainian President Poroshenko and Russian President Putin in the first half of June. However, Ukrainian President Poroshenko has already partly defied Russia by stating “there will be a sharp increase in the efficiency of anti-terrorist operations” which stands in contrast to comments from Russian Foreign Minister Lavrov that any escalation would be a “colossal mistake”."
Key Quotes
"The yen has weakened modestly in the Asia trading session with USD/JPY rising back towards the 102.00-level. Yen weakness reflects the ongoing improvement in global investor risk sentiment as evident by the MSCI World Equity index rising to a new record high yesterday."
"Investor concerns over geopolitical tensions related to developments in the Ukraine have continued to ease after the presidential election over the weekend. Leading candidate Petro Poroshenko won as expected amidst a high voter turnout although it was heavily constrained in the Donetsk and Lugansk regions."
"Russia has issued a cautious endorsement of the election outcome. Both Foreign Minister Sergei Lavrov and Head of the Presidential Administration Sergei Ivanov have stated that Russia would “respect the will of the Ukrainian people” and is ready for dialogue with Ukrainian President Poroshenko."
"A meeting is expected to take place between Ukrainian President Poroshenko and Russian President Putin in the first half of June. However, Ukrainian President Poroshenko has already partly defied Russia by stating “there will be a sharp increase in the efficiency of anti-terrorist operations” which stands in contrast to comments from Russian Foreign Minister Lavrov that any escalation would be a “colossal mistake”."