Forex Top Team

Will the impact of the decline in yen bond yields continue?

The dollar/yen exchange rate strengthened in the afternoon of the Tokyo market, and recovered to the 130 yen level in the early morning of London. The 5-year fund-supplying operation against common collateral of 1 trillion yen was announced, and 3.1 trillion yen was bid. .
After last week’s Bank of Japan meeting, upward pressure on government bond yields has receded, and as yen-buying momentum has weakened, is it likely that the dollar/yen pair will try to move up? Yen-selling is dominant, with the euro-yen trading at the upper-141 yen level. The yen may continue to sell off after this. The immediate point is around last Friday’s high of 130.61.
The weaker dollar prevails in the eurodollar and other markets. In addition to the euro buying due to risk appetite triggered by rising stock prices, ECB officials’ aggressive stance of continuing interest rate hikes, including ECB President Lagarde at last week’s Davos meeting, has led to euro buying. In the morning of London, there was a scene where it was put on the 1.09 level. Deployment with awareness of 1.10 is expected.


In addition, AUD buying dominated today. It is assumed that the consumer price index (CPI), which is scheduled for the 25th, is conscious. Pay attention to trends in AUD.

More Insights