There is a limit to the negative effect on the yen of the capital outflows that have been driving it down for the last two months,
More Quotes from Adam Cole:
Sentiment is generally negative for the dollar even in the face of good news. The market is looking through the expected rate hikes. If you take away the interest rate support for the dollar... and the structural problem is still there, the trend for the dollar is downwards.Adam Cole
The risk is that the deficit is rather worse than the market is looking for and if that's the case it may swing the focus back to structural dollar negatives and away from the interest rate focus.
Adam Cole
Even if they don't change at this week's meeting the delay is only one month. It will take three months to withdraw excess liquidity before they can target zero interest rates. So the policy shift might not have a material impact.
Adam Cole
What is doing the damage is the fact that the U. K. is pulling in more imports, which shows the continued strength of the economy and the strength of sterling,
Adam Cole
If we do buy the Japan recovery story, then there is probably more buying to be done and that is still the principal flow that will support the yen.
Adam Cole
The market is increasingly seeing a risk that the Fed pauses in its rate cycle -- not only that but also the peak in the interest cycle will be considerably lower.
Adam Cole
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Based on Topics: Capital QuotesBased on Keywords: outflows
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