Daily Brief – Japanese Yen

Japanese Yen

By the time you read this, it is more than possible that the Bank of Japan in accord with the USA have jointly undertaken Yen intervention. The Yen strengthened sharply on Friday night as sentiment moved towards that happening. The level of USD/JPY 160 is seen as the level that will be defended. If such joint intervention happens, it will be the first time since 2011. Indeed, it may be that the USA will simultaneously sell USD in support of the New Taiwan Dollar and the Korean Won simultaneously. All eyes on Asia.

EUR/JPY 184.06.

Gold

This morning, Gold passed through the psychological level of USD 5000 and at the time of writing is trading at USD 5024 in Singapore. Unsurprising, given the US battle fleet currently steaming towards the Persian Gulf.

GBP/USD 1.3669.

Loonie

The CAD has been having a good time for two reasons and neither of them have been domestic Canadian: firstly, CAD has strengthened 0.5% more on USD weakness in the past week rather than innate Canadian market positivity. The second reason is down to a strengthening oil price which has seen Brent get to USD 65.88.

USD/CAD 1.3698.

Poland

Not in a hurry to join the EUR says Finance Minister Andrzej Domanski due to Poland’s strong and strengthening economy. Expect to see the Zloty around for some time to come.

EUR/USD 1.1828.

Innuendo

At 6 minutes 35 seconds Queen broke their own record set with Bohemian Rhapsody and challenged every other record for the longest Number One with this song released this day 35 years ago in 1991. Brian May – the guitarist and hedgehog cheer leader with all that hair (still) played flamenco guitar and the final version is up there with Hey Jude by the Beatles and Oasis’ All Around the World.

While the sun hangs in the sky and the desert has sand
While the waves crash in the sea and meet the land
While there’s a wind and the stars and the rainbow
Till the mountains crumble into the plain

Oh yes we’ll keep on tryin’
Tread that fine line
Oh we’ll keep on tryin yeah
Just passing our time

While we live according to race, colour or creed
While we rule by blind madness and pure greed
Our lives dictated by tradition, superstition, false religion
Through the aeons, and on and on

Oh yes we’ll keep on tryin’
We’ll tread that fine line
Oh oh we’ll keep on tryin’
Till the end of time
Till the end of time

Through the sorrow all through our splendour
Don’t take offence at my innuendo

You can be anything you want to be
Just turn yourself into anything you think that you could ever be
Be free with your tempo be free be free
Surrender your ego be free be free to yourself

Oooh ooh

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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