HSBC has revised its USD/JPY forecasts downward, lowering its projections to
- 145 from 154 for Q1,
- 148 from 156 for Q2,
- 150 from 158 for Q3,
- and 154 from 160 for Q4.
More:
- HSBC says investors have shown an exceptional level of interest in the yen.
- Data from the CFTC on speculative positions reveal that the number of long yen futures contracts has recently climbed to record highs.
- I posted on the data earlier this week: Data show speculative traders have flipped from a net short to a net long position on euro
HSBC attributes this renewed JPY optimism to several factors,
- including the Bank of Japan’s rate-hike cycle appearing more sustainable
- and the yen emerging as a stronger safe-haven currency than the U.S. dollar amid concerns over a slowing U.S. economy.
This article was written by Eamonn Sheridan at www.forexlive.com.