The recent rebound could be ephemeral, with political uncertainty in Japan and fiscal expansion pressures continuing to weigh on the feeling. Meanwhile, the dismantling of long positions in USD/JPY could be amplifying the general weakness of the dollar, says the FX analyst of ING, Francesco Pesole.
The fragile position of ishiba cloud the perspectives
“The dismantling of long positions in USD/JPY could also be weighing on the dollar to a broader level. Here, our opinion is that the rebound of the Yen could be an accident, since the position of Prime Minister Shigeru Ihiba remains fragile, even if he manages to ensure a commercial agreement with the United States.”
“The pressure of other parties to boost some expansive fiscal measures is unlikely to disappear, and that is what has worried long -term JGBS. Beyond the initial reaction of ‘buying the rumor, selling the fact’, the bond market is still vulnerable.”
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.
