Derek Halpenny
Derek Halpenny
event foreign guaranteed investors japanese nearly pick purchases yield
Yield is still very important for Japanese investors and it's nearly a guaranteed event that we'll see a pick up in purchases of foreign assets.
helping interest march rate rise shift towards week
There has been a shift this week towards expectations of another U.S. interest rate rise in March -- the interest rate differential is there and it is helping the dollar.
argue bit certainly convinced cut further interest market monetary possibly rate seen since stability
We could argue possibly that we've seen a little bit of stability since we've had the interest rate cut out of the way. Certainly the market is not as convinced over the need for further substantial monetary tightening in the UK.
dollar loses rate towards turning
Towards the end of the year, we do see the dollar turning down as it loses its rate support.
bit maybe rates subject tackle
One subject he may tackle is that maybe short-term rates need to be that bit higher.
gasoline negative oil prices rising
Rising oil and gasoline prices are negative for the dollar.
bit closer easing governor indicate inevitable message relative
I think it's inevitable that Governor Fukui will indicate we're that bit closer to the end of quantitative easing but I still think the message will be one of relative caution.
beginning below bit concern fact gone market playing push time trying
I think the fact that every time we've gone below 114 yen (on dollar/yen) we've bounced back higher, is beginning to become a bit of a concern for those playing the short-term market by trying to push dollar-yen lower.
appetite consensus creeping dollar employment given gradually higher limited original reading released report selling
Given that the employment report will be released on Friday, the appetite for selling the dollar may be limited especially with the consensus for non-farm payrolls gradually creeping higher from the original reading of 200,000.
changed knows market repeated shift timing
Fukui has said nothing new, he has pretty much repeated what the market already knows and hasn't changed the timing of a shift on quantitative easing.
beyond easing given government interest maintain moving rate rhetoric seen zero
Given the rhetoric we've seen from the government today, the pressure, beyond moving away from quantitative easing will be very, very much on the BOJ to maintain a zero interest rate structure.
continuity dollar interest means number objective rate stress
His number one objective will be to stress continuity. Continuity means more interest rate increases, so that means the dollar can keep going up.
buying interest obvious rate
There is no more obvious way to play interest rate differentials than buying dollar/yen.
changed dollar obviously overall relatively selling sentiment strength
Overall sentiment hasn't changed significantly, obviously we've had a reversal and the selling has ceased temporarily... But the strength of the dollar has been relatively modest.