JPY

The question continuing to generate debate amongst market participants is how long quantitative easing will buoy the capital markets.  Signs of a change in Japan were first brought up this weekend by Japan Economy Minister Amari saying that the Yen has corrected its strength has weighted on the Yen.  Arguments focusing on the US easing program continue to make the rounds through different Federal Reserve Presidents. AUD/USD remians under pressure as China shows softer economic data – on the technical side, the picture for [...]

20:12 US TREASURY OFFICIAL SAYS TREASURY SECRETARY LEW HAS ASKED THAT INCOMING ACTING IRS HEAD WERFEL CONDUCT A “THOROUGH REVIEW” OF IRS 19:40 TREASURIES-Prices fall on improved consumer sentiment 19:35 CFTC-SPECULATORS INCREASE CBOT US ULTRABOND TREASURY FUTURES NET SHORT POSITION BY 6,548 CONTRACTS TO 23,583 IN WEEK ON MAY 14 19:35 CFTC-SPECULATORS RAISE CBOT US TREASURY BONDS FUTURES NET LONG POSITION BY 7,149 CONTRACTS TO 14,638 IN WEEK ON MAY 14 19:34 CFTC-SPECULATORS CUT CBOT US 2-YEAR TREASURY FUTURES NET LONG [...]

20:05 BANK OF CANADA TO AUCTION CUSD1.400 billion OF 3.500 percent BONDS DUE 2045 ON MAY 22 20:04 NY FEDERAL RESERVE SAYS NO FOREX SWAPS WITH FOREIGN CENTRAL BANKS IN LATEST WEEK 15:31 IMF STAFF TO VISIT MADRID ON MAY 21 FOR THIRD MONITORING REPORT OF SPAIN’S BANKING SECTOR REFORM 15:23 EUROPEAN INDUSTRY COMMISSIONER TAJANI SAYS EURO IS TOO STRONG, ECB SHOULD MANAGE THE CURRENCY TO HELP EXPORTS 15:01 FRANCE’S HOLLANDE SAYS ECONOMY WILL BE FLAT IN 2013 15:01 FED BOUGHT [...]

17:00 FED TO OFFER 28-DAY TERM DEPOSITS MAY 20, TO SETTLE MAY 23, AT FIXED RATE OF 0.26 percent 16:13 Gilts slide after Bank of England turns hopeful on economy 16:00 Bank of England revises away UK’s double-dip recession 15:11 BRUSSELS-FRENCH PRESIDENT HOLLANDE SAYS 3.25 BILLION EUROS HAVE BEEN PLEDGED AT MALI DONORS’ CONFERENCE 15:01 FED BOUGHT USD.92 BILLION OF TREASURIES MATURING BETWEEN AUG 2023 AND FEB 2031; DEALERS SUBMITTED USD3.44 billion OF TREASURIES FOR CONSIDERATION IN FED PURCHASE -NY FED [...]

23:56 10-YEAR JGB YIELD RISES TO 0.9 percent , HIGHEST SINCE APRIL 2012 20:24 TREASURIES-Bond prices fall as stocks draw buyers 19:47 U.S. 30-YEAR BOND EXTENDS LOSS TO POINT AS STOCKS EXTEND GAINS, S&P 500 UP 1.0O percent 19:30 ANALYSIS-Japan government-bond selloff sparks fears of too much, too fast 16:57 BOE SAYS IT IS IN CLOSE CONTACT WITH BLOOMBERG, WHICH HAS PROVIDED ASSURANCES THAT "THIS DOES NOT HAPPEN AGAIN" 15:56 SPAIN’S DE GUINDOS SAYS EUROGROUP MEMBERS AGREED MUST ADVANCE RAPIDLY ON [...]

20:01 CFTC-SPECULATORS CUT CBOT US 10-YEAR TREASURY FUTURES NET LONG POSITION BY 94,088 CONTRACTS TO 37,956 IN WEEK ON MAY 07 20:01 CFTC-SPECULATORS CUT CBOT US 2-YEAR TREASURY FUTURES NET LONG POSITION BY 3,205 CONTRACTS TO 43,426 IN WEEK ON MAY 07 20:01 CFTC-SPECULATORS CUT CBOT US 5-YEAR TREASURY FUTURES NET LONG POSITION BY 28,332 CONTRACTS TO 155,181 IN WEEK ON MAY 07 15:22 U.S. 30-YR TREASURY BOND EXTENDS LOSS TO TWO POINTS AS YEN TRADES AT 4-1/2 YEAR LOW VERSUS [...]

The major theme in the capital markets on Friday was the effect the USD/JPY had on other assets as the currency pair ripped through resistance levels driving the Nikkei up nearly 3%.  The export led Japanese economy continues to benefit from a weaker yen which declined against the dollar, pound and Euro.  While the RBA lowered its inflation outlook setting the stage for additional easing, the UK reported a in line merchandise trade deficit. Japan reported its March current account figures [...]