Derek Halpenny Quotes (15 Quotes)

The broader picture for the yen's decline is down to the continued deterioration in Japan's trade surplus.

We could argue possibly that we've seen a little bit of stability since we've had the interest rate cut out of the way. Certainly the market is not as convinced over the need for further substantial monetary tightening in the UK.

There has been a shift this week towards expectations of another U.S. interest rate rise in March -- the interest rate differential is there and it is helping the dollar.

The dollar remains underpinned against both the euro and the yen ahead of the key employment report from the US.

Following previous moves by the Federal Reserve, the market pretty much immediately looked ahead and had a confident view on the interest-rate outlook for the next two meetings. That's been a supportive factor for the dollar. Now it seems to be different.

Any shift in policy on Thursday from the BOJ is very likely to be accompanied by a strong commitment to maintaining zero interest rates. There is no trade more obvious than selling the yen against the dollar.

A banking crisis is a more realistic view than at any time in the last few years.

Given that the employment report will be released on Friday, the appetite for selling the dollar may be limited especially with the consensus for non-farm payrolls gradually creeping higher from the original reading of 200,000.

There is no more obvious way to play interest rate differentials than buying dollaryen.

I think the fact that every time we've gone below 114 yen (on dollaryen) we've bounced back higher, is beginning to become a bit of a concern for those playing the short-term market by trying to push dollar-yen lower.

His number one objective will be to stress continuity. Continuity means more interest rate increases, so that means the dollar can keep going up.

Given the rhetoric we've seen from the government today, the pressure, beyond moving away from quantitative easing will be very, very much on the BOJ to maintain a zero interest rate structure.

The consensus is that we are definitely going to war and it's probably two to three weeks away, no more than that. We can take it as a given that the Bank of Japan is in the market at or around 117, so that the low we have tested in the past at 116.80 remains intact.

The market is now beginning to look beyond the potential first step in terms of a shift from quantitative easing to interest rate targeting.

The market has already come to the conclusion that the medium-term impact of Katrina will be negligible if not net positive, therefore weak figures in the near term won't have any bearing. The market is now looking for a Fed move next week.