G7 Meeting
The G-7 meeting is over, and the joint communiqué
did not talk especially on the Yen, in another very oblique
statement. Carry Trades were the main subject on this meeting.
The majors did not move much in light of the JPY action, but they gained momentum against the USD, as technical indicators pointed out on Friday. [Read full story]
- Review the opinion of our expert Tony Juste in the Advisor's Blog
In-Depth Analysis
- US Open Market Points - Yen Probes 122.00 After G-7 by FXCM
- Wakeup Call on Forex Markets - JPY Lower after G7 by Saxo Bank
- Morning Report - G7 focus by Westpac Institutional Bank
- Asia Market Update - Further weakness in JPY expected as G7 fails to single out the weak currency by Trade The News
- Overnight Briefing: Far East Timezone - G7 by Jyske Bank
Related News
- Yen hits record low vs euro post G7, stocks slide (Reuters)
- Yen extends losses, shrugs off G7 warning (Reuters)
- US dollar mixed in Sydney morning trade after weekend G7 meeting (AFX News)
- G7 Finance Officials Aim To Curb Carry Trade (Dow Jones)
- G7 MEETING US's Paulson says Omi gives 'favourable' report on Japan economy (AFX News)
Analysts' Comments
- Tony Juste, FX Advisor at FXstreet.com:
"Was there a meeting of the g-7 during the weekend? Really? I'm sorry I thought it had been re-scheduled for another day .... The G-7 is likely to be name the J-7 sooner or later (j for joker), as it is clear that in that group, only two voices count: US and Japan. They did not want to talk about the Yen but only focus on China. Quite so, the joint statement did not have anything on the yen, but a lot on China. Germany was hosting the even, what event?" - FXstreet.com - Cornelius Luca, economist at Global Forex Trading Ltd:
"The dollar rallied against the yen and slipped the European currencies early Monday. The G7 ministers warned against carry trades, which usually involve selling the low-yielding yen, so the artificially weak Japanese currency to gain against the dollar. But the yen remains weak because the financial ministers left it the Japanese to deal with their currency! Therefore, short yen positions against the dollar, commodity and the European currencies remain favored." - Global Forex Trading Ltd - Ashley Davies, forex strategist at UBS AG:
"The G7 did not mention carry trades directly and the statement did not signal any action that is likely to be taken by the policy makers. The yen was likely to weaken further in the near term." - Reuters - Gerrard Katz, regional head of currency trading for north Asia at Standard Chartered Bank:
"The market was expecting something a bit stronger from the G7 on carry trades but, really, there is no major change in the communique. Dollar/yen and euro/yen have been quite well bid this morning. Any hedges that had been put on have probably been unwound this morning and the market will continue to push carry trades higher." - Reuters
