While the Yen bore the brunt of the recovery in risk appetite, the Dollar benefited belatedly. ING economists believe that the USD/JPY pair could bounce towards the 135.00 area.
Oil-sensitive currencies could continue to enjoy decent momentum
“The improvement in sentiment hits the yen asymmetrically as it is accompanied by a reversal of dovish Fed expectations: USD/JPY could bounce to the 135.00 areaalthough we are in favor of another decline in the pair beyond the short term.”
“Oil-sensitive currencies could continue to enjoy decent momentumas we see more upside risks in oil prices. The loonie is also benefiting from the general improvement in sentiment in the US (North America and Latam), but lacks a history of internal hardening, so your recovery could start to run out sooner than other peers (such as MXN and NOK).”
“We think the small USD rally seen yesterday could be one of many along a gradual downward trajectory, but today we would favor some consolidation around current levels.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
