Good morning, afternoon or evening to all ForexLive participants and welcome to the start of the new FX week.
This will be the last week where market liquidity will be ‘normal’ … if there is such a thing … but, having said this liquidity as already started to notably diminish as we head towards the holiday season of Christmas and New Year. The upside is, of course, moves can be more pronounced.
But, I digress. Let’s focus on the next few hour where, as is usual for a Monday morning, interbank market liquidity is very thin until liquidity improves as more Asian centres come on online. Prices are liable to swing around on not too much at all, so take care out there… Oh, and be particularly wary of yen in the wake of the Japanese election (& congrats to PM Abe, well played, sir!).
Price guide in early New Zealand – a little early USD/JPY strength – but not a lot so far:
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The latest from the Japanese election shows a resounding win for Abe, but he is likely to remain in coalition with Komeito.
NHK reports the coalition is certain to achieve a 2/3 majority (Here is a guide to what the numbers mean, from before the election: Japan election not far away now … the important numbers)
This from the Japan Times circa 1826GMT on December 15:
And, from Bloomberg: Abe Scores Commanding Majority in Japan Lower House Election Win
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USD/JPY 118.86 as I update this post (1840GMT) … and as i update again at 1847GMT its 118.76
