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Buy the rumour, sell the fact?

By   || August 30, 2009 at 22:17 GMT
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We now need to see whether this adage works this time for the JPY crosses. For the last few weeks we have seen corporates in particular being very active in the market selling rallies on all the JPY crosses in anticipation of an opposition victory in the election. I’m sure some savvy speculative players have been taking the same tack. Now it remains to be seen whether this move actually gathers some steam or if, now that the election is out of the way, we see some of these positions closed.

Dealers say that they still see a number of stops on the downside in USD/JPY and GBP/JPY particularly so we may see one sharp move lower over the next 24 hours and we then ‘buy the fact’.

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