Markets

Saikyo Sakura Assets Notes Japanese Yen Rallys Ahead Of Tension In Europe

Saikyo Sakura Assets say the Japanese Yen outperformed as tensions grew ahead of Crimea's Sunday referendum

Saikyo Sakura Assets noted that the Japanese Yen outperformed Friday as tensions grew ahead of Crimea's Sunday referendum, discouraging investors from currencies they saw as riskier. In early January, U.S. stocks posted their worst weekly loss, following reduced closures in Asia and Europe.

The USD/JPY dollar, -0.06% dropped from 102.62 yen early Thursday to 101.40 yen for a weekly loss of 1.8%.

Crimean citizens are likely to vote to secede from Ukraine on Sunday, even as Ukraine, the  United States, and the European Union argue that the vote is illegal. Read: What Crimean vote on Sunday means for economies EUR/USD, + 0.0803 per cent grew to $1.3910 from the $1.3859 level of early Thursday. The euro has earned nearly 0.3 per cent over the dollar for the week.

After European Central Bank President Mario Draghi talked about the exchange rate and how the elevated level weighed on inflation, the currency had come under pressure on Thursday.

While he made those remarks first in the aftermath of last week's ECB conference, his speech was distinct in Vienna. "He predicts a lower euro essentially, anticipating a decline in the exchange rate because of his expectation that interest rate spreads will move in a way that will weaken the currency," Commented Tokunaga Manzo, Head of Equity Research at Saikyo Sakura Assets.

"The idea is directly forward, but the specificity of a central banker's guidance is less prevalent, and one that markets will acknowledge as an attempt to signal ongoing power for their discomfort with the euro's," he added.

The British pound GBPUSD, meanwhile, grew from $1,6624 late Thursday to+ 0.1612 per cent to $1,6648 but posted a weekly loss of 0.4 per cent against the dollar.

U.S. data published Friday showed a familiar customer feeling gage dropped to its smallest point in four months in March. In February, wholesale prices decreased in three months for the first time.

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The ICE dollar index DXY,-0.10% tracking the U.S. unit against six competitors, dropped to 79,406 on Thursday from 79,612 for a weekly loss of 0.4%. The WSJ dollar BUXX index, -0.07 per cent a gage of the strength of the greenback against a broader currency basket, dropped from 73.25 to 73.08.

Saikyo Sakura Assets researchers noted that AUD/USD, -0.1426 per cent of the Australian dollar shifted up to 90.32 U.S. cents from 90.23 U.S. cents, expanding profits after Australia posted monthly development in employment that exceeded expectations.

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