Daily Forex comment: The market is buying the rumors, but sells the facts

Night movement of a pair of dollar / yen caught many by surprise, but when the dust had settled, the market has less confidence in the fact that it was a new intervention by the Bank of Japan, a hugerder for sluggish market may have played a role (Thursday - was a holiday in Japan ).



So, a couple of dollar / yen strongly unfolded after the burst, up to 1%. Looking back at the development of the forex market this week, it may be noted that the euro and Swiss franc have been in Top among the major currencies, while Canadian pound and higher-yielding currencies clearly "dragged" only slightly rising against the dollar since the opening on Monday. This is not a venture reaction, expected after the Fed statement on Tuesday evening. Nevertheless, this situation is consistent with our assessment of impact on the basic market assets (stocks drag, credit), in addition, many markets are not in a situation of stress or extreme oversold conditions, which prevailed 18 months ago, when entered into force on the first round quantitative easing.

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