Fundamental view: The US dollar initially fell during the course of the week against the Japanese yen but then turned around to show signs of strength again. Covid cases are edging higher in Japan, including in Tokyo, where the delayed Olympic Games have begun. Reports about athletes and other officials testing positive are also coming [...]
Fundamental view: US economic growth is expected to be twice as fast as Japan’s and that prospect has been a main support for the dollar. Japan’s central bank left its base rate unchanged at 0.1% in its decision on Friday while reducing its 2021 growth estimate to 3.8% from 4%. The Fed’s 2021 projection had [...]
Fundamental view: The US dollar has fallen a bit during the course of the trading week. The USD/JPY is lower on the week, stocks had a fall on Thursday and Treasury yields have been sliding since the Fed meeting on June 16. The expectations for a powerful US rebound have been so overstated that a [...]
Fundamental view: US dollar has rallied against the yen in the past week. The Japanese economic data was mixed with slightly better than forecast Retail Trade in April offset by a weaker than expected Tankan Manufacturing Survey for the second quarter. One bright spot was All Industry Capex (capital investment) which rose to 9.6% from [...]
