Intra-Day Market Moving News and Views
25 Jan 2016 00:10GMT
USD/JPY - ..... Dlr rallied in the 2nd part of last week on active short-covering. Reuters reported earlier speculators reduced bullish bets on the U.S. dollar for a fourth straight week, as net longs fell to their lowest level since late October, according to Reuters calculations and data from the Commodity Futures Trading Commission released on Friday.
The value of the dollar's net long position slid to $25.03 billion in the week ended Jan. 19, from $25.29 billion in the previous week. This was the third straight week that net dollar longs came in below $30 billion.
The volatility in financial markets driven by the downtrend in oil has diminished the allure of the dollar against both the euro and yen, which have lower interest rates than the U.S. currency.
This week, Japanese yen net longs totaled 37,653 contracts, from 25,266 previously. This week's yen net longs were the largest since mid-February 2012.
These days, the safe haven yen and low-yielding euro tend to struggle in times of increased risk appetite because these currencies are often used to fund investment in risky assets. They consequently rise back up when there is a retreat from those assets in periods of market stress.
Japan's exports fell 8.0 percent in December from a year earlier, down for the third straight month, Ministry of Finance data showed on Monday, in a sign the slowdown in China's economy and emerging markets is taking a toll on external demand.
The decline compares with economists' median estimate for a 6.8 percent drop in a Reuters poll. It followed a 3.3 percent decrease in November.
Imports fell 18.0 percent in December, versus the median forecast for a 16.4 percent decline, bringing the trade balance to a surplus of 140.2 billion yen ($1.18 billion). Economists expected a surplus of 100.0 billion yen.
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