Our friends at Livesquawk highlighting a Bloomberg post 22 Aug 2016
Interview given by Todd Elmer, head of Citi's head of G10 fx strategy desk in Asia
Says Elmer:
- there is some scepticism that they are going to mount an even stronger defence against yen appreciation
- international authorities aren't going to be seeing any signs that a stronger yen is destabilizing other markets. If anything, since the spring, there does seem to be some degree of agreement among international authorities that a somewhat weaker dollar is a better outcome for global markets
- a weak dollar has been associated with stronger asset prices, less volatility, and I don't think that pattern is going to change anytime soon
- to me the path of least resistance is lower for dollar-yen.There's not a great deal of fear in the market for intervention
- the yen will probably reach 95 before the Bank of Japan meets on Sept. 21 unless investors are convinced the authorities will move beyond the policy steps that have been unveiled so far
Is that the same Citigroup who recommended a EURUSD sell around 1.1165 and got stopped out within 24 hours ?
More crystal ball gazing, considered opinion, or just shock-jock attention-seeking marketing?
Either way everyone's entitled to a view and it's a bold call so we'll see what transpires in due course. Meanwhile the conjecture will continue.
Yen demand again currently as USDJPY sits on session lows with GBPJPY back down to 131.72 dragging GBPUSD lower to 1.3092 helped by EURGBP demand again to 0.8628.
Full Bloomberg article here
