Excerpt from: Futures and Commodity News
|
 |
| August 08, 2006 | | Will the yen rise this August seasonals? | It might be wise to hold off on spot forex spread bets on the USD/JPY for a day or so. The Federal Reserve is expected to announce an interest rate decision later today, and that could signal a weakening U.S. dollar to the yen's strength due to an interest rate hike. However, right now the two have been too close in trading. However, later this month, as August seasonals really get under way, the yen is expected to rally and gain against the dollar in a major way, reports the Chicago Tribune:
"We like the Japanese yen because we
think it's undervalued and it will be supported by the [Bank of Japan]
continuing to raise rates," said Jason Daw, a currency strategist in
New York at Merrill who wrote a report last week titled "The August
Legend of Dollar-Yen."
It is worth noting that spot forex trades including the U.S. dollar with either the pound, the euro or the Swiss franc could be good spread bets, as the dollar is weak against all of these currencies.
| | |
|
|
