Yen Steps up Moves
By Ashraf Laidi
18 November 2008 @ 10:06 am EDT
Yen activity steps up with yen currency crosses emerging from the shadow of GBP amid a fresh ascent in global risk aversion. Markets to keep watch on Paulson/Bernanke’s testimony shedding more detail on the immobilization of half the $700 billion TARP package. FX traders to watch whether the Dow and S&P500 continue closing above the key 8,100 and 840 levels before considering fresh trades on the low yielding JPY. Japan’s official descent into recession hasn’t fared negative for the JPY as the recession is seen another factor dampening Japanese outflows into global markets. And the fact that more than half of the planned TARP package will remain untapped into year-end is also another excuse to keep any optimism restrained.