FXStreet reports that economists at TD Securities note that USD/JPY has rocketed higher in line with the move of the EDZ2-EDZ3 calendar spread and suggest that could keep the pair elevated near its 2021 highs.
“One needs to look no further than the repricing euro/dollar curve where Z2Z3 has widened rather appreciably. While one could argue that policy tightening may be a bit premature, there isn't much in the way of a catalyst to material derail it.”
"The market seems to have gotten over its Evergrande craze. What's more, one could also argue that the lack of a terminal rate adjustment suggests that the risk is towards more hawkish repricing further out the curve that could further weaken the JPY. Taken in conjunction with our short US 10y real rates position (targeting -60bp), the yen seems like it will do nothing but struggle."
“The cyclical highs near 112 beckon in USD/JPY.”
© 2000-2021. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.