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Japanese Election Coming, Politics Risks Became the Indicator of Trends of JPY
Since five years ago, Japanese exchange market started to highly concerned about politics. Now the market investors are caring about what impacts the election on 22nd October would bring to the market.
For most of the people, they believe Prime Minister Abe and his union would remain as the majority for the third times. Therefore, they are positive to Abe Economics and the weak JPY. However, the situation is much more complicated than couple months ago. As several new parties rose, the voters are harder to make their decision. The question about Abe’s leading time of the party. Abe might taste the failure. Best currency exchange rates Brisbane Value Accountants reminds you that.
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Tokyo Governor Koike Yuriko leading New Hope party didn’t express their stands of currency policy. They only mentioned that they hope to remain the easing policies temporarily. However, they don’t want to rely on easing policies. They even refuse to work with BOJ with the stable exit strategy. In the exchange market, many people predicted if her party wins, they would strengthen JPY and making some impacts to Japanese stocks market.
“This is very important to the foreigners out of Japan. Due to Abe’s government weaken JPY, if it is going to end, it would be very shocking. Especially, it would become a pressure to strengthen JPY and to the stocks market.” Said ex-BOJ trader and director of JP Morgan’ s Japanese market research department, Tohru Sasaki. In these three weeks, risks of USD exchange to JPY highly increased on 2nd October. The premium of the low-priced option jumps, reflecting the fact that investors are speculating or hedging the strong yen. If you want to make best currency exchange rates Brisbane, follow the latest trend.
Currency Reaction
As so far, all the possible trends related to the election. The yen continues to be traded within the relatively limited range so far this year, mainly 108-115, high 107.32, low 118.60. Due to the outlook for US monetary policy may be more important for the yen, given that the Bank of Japan will keep its near-zero target for 10-year Treasury yields over a period of time.
“The current rate of US dollar against the yen is the US yield,” he said, adding that “it is very important to buy yen because of the risk of Japanese politics.” “The impact may be there, but it will not be a long-term trendsetting factor.”
However, the political problem is not a news anymore nowadays. In 2009, the Japanese government before the power of Abe did not put any measures against the strong currency movements, the result is the yen soared. To reach a post-war high of 75.35 in 2011.
USD Turns to Going Low
USD exchange to the main forex turned to going low on Friday. Early today, the US announced the employment report of September. With the impacts of the hurricanes, the employment-population the first time decreased in the past seven years. However, the growth of incomes is higher than the expected. USD therefore increased.
Best currency exchange rates Brisbane shall follow the following index
USDX fell 0.1% to 93.892. The high point was at 94.261. GBP fell to 1.3047USD, ended at 1.3118 on Thursday New York. GBP dell 2.6% this week. It’s the hugest decreasing in a week since 7th October last year. Euro rose to 1.1728 USD, ended at 1.1711 Thursday. USD fell to 112.73 JPY, ended at 112.82 Thursday. However, it rose to the highest point in 12 weeks earlier.
The US announced the employment report of September. The investors are focusing on the 0.5% of income increasing rate. Annual growth rate of 2.9%, higher than the growth of 2.7% in August, a recession after the high point. 2-year bond yields rose as well, supporting the dollar higher. Germany announced August manufacturing orders rose, surpassing July’s unexpected drop. Investors focus on the BOE may begin to reduce the quantitative easing program (QE). After the US announced the employment report, we expect FED would raise the interest rate in December. As best currency exchange rates Brisbane, we made such the prediction.
The Other Data
British congressman’s confidence in Prime Minister Mayi fell to a low level. But because the election has been poor results of the election. Then step down, it is not wise. If Mayi can hold the throne, GBP would rebind from the recent decline.
Economic data, the United States today announced September unemployment rate fell to 4.2%. The highest since December 2000 low of 4.4%.
US employment in September decreased by 33,000 people, estimated to increase 75,000 people. The average hourly wage rose by 0.5% in September, higher than the 0.3% estimate.
US August sales rose to 0.9% in July, up 0.6% in July. Here is best currency exchange rates Brisbane. Reuters Bangalore October 6, Reuters survey results show that the beginning of the Asian currency, one year after the price cannot be higher than the current level because the US Federal Reserve (Fed) to further raise interest rates will curb its trend.
The Reuters visited more than 50 currency strategists, the results show that Asian currencies are generally flat at the current level. The average estimate of 11 major Asian currencies shows that there will be little change in the next 12 months compared to current levels. Best currency exchange rates Brisbane.
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